Irs Section 1411

1411 a 1 application to individuals in the case of an individual there is hereby imposed in addition to any other tax imposed by this subtitle for each taxable year a tax equal to 3 8 percent of the lesser of i r c.

Irs section 1411. 1411 imposes an additional 3 8 tax on net investment income of individuals trusts and estates. Except as provided in subsection e 1 application to individuals. On line 14 under other information the trust officer has code h section 1411 adjustment and then a negative number 2 814.

On line 5 of the k 1 is the amount 2 814. Net investment income shall not include any item taken into account in determining self employment income for such taxable year on which a tax is imposed by section 1401 b. The niit applies at a rate of 3 8 to certain net investment income of individuals estates and trusts that have income above the statutory threshold amounts.

When i plug all this information into our return it shows the 2 814 as taxable income. 1411 a 1 a net investment income for such taxable year or. Internal revenue code section 1411.

The niit is imposed by 1411 of the internal revenue code. A an unmarried individual rents a boat to b for 100 000 in year 1. For purposes of these examples assume the taxpayer is a united states citizen uses a calendar taxable year and year 1 and all subsequent years are taxable years in which section 1411 is in effect.

In the case of an individual there is hereby imposed in addition to any other tax imposed by this subtitle for each taxable year a tax equal to 3 8 percent of the lesser of a net investment income for such taxable year or b the excess if any of i the modified adjusted gross income for such taxable year over ii the threshold amount. The niit applies at a rate of 3 8 to certain net investment income of individuals estates and trusts that have income above the statutory threshold amounts. The net investment income tax is imposed by section 1411 of the internal revenue code.

The tax is imposed on the lesser of the taxpayer s a net investment income for such taxable year or b the excess of taxpayer adjusted gross income over certain statutorily defined threshold amounts. Bloomberg tax portfolio 511 t m section 1411 net investment income tax analyzes the net investment income tax niit applicable to individuals estates and trusts. Section 1411 imposes a 3 8 percent tax on certain individuals estates and trusts the net investment income tax.