New Bloomberg BNA Portfolio Helps Advisers Navigate Net Investment Income Tax Complexities

Arlington, Va. (August 7, 2017) — Bloomberg BNA announced today the publication of Section 1411 — Net Investment Income Tax, a new Tax Management Portfolio that analyzes the net investment income tax (NIIT) applicable to individuals, estates, and trusts. The Portfolio was authored by David H. Kirk from Ernst & Young LLP. 

The net investment income tax (NIIT), sometimes referred to as the Medicare tax on net investment income, was enacted in 2010 to generate revenue for the Affordable Care Act. It can affect a broad spectrum of taxpayers in multiple income categories, including high-income taxpayers as well as taxpayers who earn income from one-time sales of investment assets, such as stock or homes that appreciate significantly from the time of purchase. The calculation of net investment income involves myriad subtle nuances and computational challenges for tax practitioners and real estate professionals and their advisers, with noncompliance potentially resulting in significant penalties. 

This new Portfolio helps tax professionals navigate these challenges and enhance compliance by delivering in-depth expert analysis of the application of the NIIT in a variety of situations. It analyzes the computation of net investment income, the computation of NIIT liability (including special computational provisions for estates and trusts), the interaction of the NIIT with the passive activity rules, special NIIT rules for dispositions of interests in partnerships and S corporations, and collateral tax issues that arise due to the interaction with the regular federal income tax system.

“While there is ongoing debate about the future taxes that are part of the Affordable Care Act, changes are not imminent, which means there are millions of taxpayers who will continue to be impacted by the NIIT,” said Lisa Fitzpatrick, Vice President and General Manager, Tax and Accounting, Bloomberg BNA.  “This Portfolio provides professional advisers with the in-depth analysis and practical guidance they need to ensure their clients with complex tax scenarios are compliant and avoid unnecessary penalties.” 

Bloomberg BNA Tax Management Portfolios are written by expert practitioners and feature deep-dive analysis and practice tools, such as checklists, sample client letters, forms and other supporting material, on a wide range of key tax topics. For information on the full range of Tax Management Portfolios™, visit