11/15
November 16, 2016
Will you owe the 3.8% net investment income tax (NIIT) on unearned income? Try to reduce your exposure. It’s a good time for year-end planning for high-earners. The 3.8% NIIT is owed by married joint filers with a modified adjusted gross income of $250,000 ($200,000 for unmarried filers). But certain year-end moves can be used to reduce or eliminate it. For example, you might recognize investment losses to offset gains. Or you might use the installment method to spread out the taxable gain on a business sale. Contact us to examine your particular situation.