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Net Investment Income Tax

posted Feb 22, 2014, 12:45 AM by Zaher Fallahi

The Internal Revenue Service and Department of Treasury issued2013 final regulations and  a new 2013 proposed regulation on the 3.8 percent Net Investment Income Tax for Internal Revenue Code  §1411.

Effective Jan. 1, 2013, the Net Investment Income Tax applies to individuals, estates, and trusts that have net investment income and whose modified adjusted gross income is above the statutory threshold amounts.  The Net Investment Income Tax applies to the lesser of either the taxpayer’s net investment income or undistributed net investment income for a trust or estate, or the amount by which of the taxpayer’s modified adjusted gross income exceeds the statutory threshold amount. 

If you need assistance with your tax preparation, tax planning, accounting, payroll processing and the IRS representation including disclosure of undeclared foreign bank accounts, please contact Zaher Fallahi, CPA, at (310) 719-1040 (Los Angeles) or (714) 546-4272 (Orange County), or e-mail to