The Twelve Days of Taxmas – Net Investment Income Tax Base
As Christmas approaches, Klatzkin is putting a twist on a holiday classic. But rather than filling your head with drummers drumming and golden rings, we’re focused on providing tips through “The Twelve Days of Taxmas” blog series that could help minimize your tax liability.
On the tenth day of Taxmas, Klatzkin gave to me a tip that the Build Back Better Act will likely expand the Net Investment Income Tax base.
The legislation, which is currently still being negotiated, will include a provision that income is derived from a trade or business where the taxpayer actively participates. The change would be effective for taxpayers with modified adjusted gross income of $500,000 (Married filing joint). Therefore, taxpayers may want to consider deferring expenses to 2022 to lower any potential future tax.
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For additional information on the possible expansion of the Net Investment Income Tax Base or to learn more about how Klatzkin can help with another tax-related issue, click here to contact us. We look forward to speaking with you soon.
©2021 Klatzkin & Company LLP. The above represents our best understanding and interpretation of the material covered as of this post’s date and should not be construed as accounting, tax, or financial advice. Please consult your tax advisor concerning your specific situation.