Free Gray, Gray & Gray “Active vs. Passive Business Ownership” Webinar
Tuesday, January 8, 2013
Join us for this informative session, presented by GG&G Partner Michael D. Koppel, to learn how Active vs. Passive business activity can make a difference in your tax bill. Click here to register now.
Starting in 2013 high-income taxpayers will be subject to a new 3.8% tax on net investment income. Here’s the twist: The tax law considers income from “passive” ownership of a pass-through business – including LLCs (taxed as a partnership), partnerships and S corporations – to be investment income, which is subject to the new tax.
The federal tax law has very specific criteria for determining the classification of an “active” vs. “passive” taxpayer. It is important for taxpayers to review all their pass-through activities to determine if their current classification is correct, and to consider taking action to change it to avoid the extra tax.
Get answers to several key questions, including:
- What is considered net investment income (NII)?
- When is a taxpayer subject to the new 3.8% tax?
- How can you determine if a taxpayer is passive in an activity?
- Can changes to the grouping of activities help avoid the tax?
- Can qualifying as a real estate professional be beneficial?
- Can a trust minimize my tax exposure?