3.8% Net Investment Income Tax Final IRS Regs: Maximizing Planning Opportunities

Leveraging New Rules for Regrouping, Real Estate Safe Harbor, Sale of Closely Held Business Interests and More

Recording of a 110-minute premium CLE/CPE webinar with Q&A

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Conducted on Tuesday, February 25, 2014

Recorded event now available

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Course Materials

This CLE course will provide tax counsel with a road map to navigate long-awaited final regulations intended to clarify the Net Investment Income (NII) tax. The experienced panelists will discuss planning opportunities to leverage new rules for regrouping, real estate safe harbor and the new proposed regulations for the sale of closely held business interests and more.


Effective Jan. 1, 2014, after being released Nov. 26, 2013, the NII tax was long overdue and has been highly anticipated.The initial proposed regulations were issued almost a year before released.

The final regulations provide clarification and make substantial changes to a number of issues to include estimated taxes, real estate rental activities and regrouping. Despite providing some clarification, the IRS acknowledges that the regulations aren't all inclusive—questions and grey areas remain.

The Treasury also issued proposed regulations governing the controversial deemed sale rule for dispositions of active interests in partnerships and S corporations. These new proposed regulations also address capital loss carry-forwards.

Listen as our experienced panel thoroughly reviews the substantial changes made by the final and new proposed regulations and delves into those areas of utmost importance. They will provide strategies to leverage both the final and new proposed regulations.



  1. Overview of structure of NII tax
  2. Overview of changes
  3. Final regulations
    1. Real estate safe harbor and self-rental property
    2. Regrouping activities
    3. Self-charged interest
    4. Net operating losses
    5. Net gains from the sale of property
  4. New proposed regulations
    1. Sale of S corporation or partnership interests
    2. Capital loss carryforwards


The panel will review these and other key questions:

  • What changes did the final regulations make to the NII tax?
  • How will the new safe harbor benefit real estate professionals through the definition of “trade or business”?
  • What new opportunities are there now to engage in regrouping activities?
  • What planning opportunities are now available given the changes made by the final regulations and new proposed regulations?

Following the speaker presentations, you'll have an opportunity to get answers to your specific questions during the interactive Q&A.


Amy L. Barnes
Amy L. Barnes

Reinhart Boerner Van Deuren

Ms. Barnes advises on tax planning matters and negotiates with taxing authorities to resolve controversies. She...  |  Read More

Lucien A. Beaudry
Lucien A. Beaudry

Reinhart Boerner Van Deuren

Mr. Beaudry chairs the firm’s Executive Compensation and Federal Tax Planning teams and is the lead tax member of...  |  Read More

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