Examination of Business Activity Grouping Key to Net Investment Tax Plans

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Examination of current business activity grouping will be the most fertile area for 2014 net investment income tax planning for real estate professionals and other taxpayers, tax professionals told Bloomberg BNA.
“That's something that needs to be done now” for taxpayers who may be subject to the tax, Michael J. Greenwald, principal and Business Entity Tax Practice leader at Friedman LLP in New York, said Dec. 2.
The Internal Revenue Service issued final regulations Nov. 25 on the 3.8 percent surtax under tax code Section 1411. The net investment income (NII) tax became effective Jan. 1, 2013, on net unearned income or investments above a certain threshold related to certain individuals, estates and trusts.

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