New 3.8% Net Investment Income Tax: Planning for Closely Held Companies

Navigating New Medicare Tax, Self-Employment Tax, and Capital Gains Issues for Members and Owners of Pass-Through Entities

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

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Conducted on Tuesday, July 16, 2013

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Course Materials

This teleconference will discuss the application of these new taxes, the definition and calculation of the tax on net investment income, tax planning strategies for owners and members of pass-through entities, and avoidance of unique tax traps.


Beginning in 2013, both compensation and investment income will be subject to additional taxes.  Compensation income will be subject to an increase in the Medicare tax for certain thresholds of income, and certain types of investment income will be subject to an extra 3.8% tax.

These related tax increases are a source of confusion and complexity and result in the creation of new income tax categories.

These taxes will impact tax planning for owners and members of pass-through entities and S Corps as well as highly compensated individuals.  It will also impact the economics of buying, selling and exchanging interests in closely held companies.

Listen as our authoritative panel of tax practitioners discusses the application of the new taxes, the self-employment tax, tax planning strategies for owners and members of partnerships and S corporations, and strategies to avoid tax traps.



  1. New 3.8% net investment tax
  2. Increases in payroll and self-employment tax
  3. Capital gains tax planning
  4. Planning for pass-through entities and S corporation issues
  5. Impact of new tax regime on entity selection and transfers and sales of interests


The panel will review these and other key questions:

  • What constitutes “net investment income” and how is the tax calculated?
  • How do you determine whether income derived from a pass-through entity is income from a passive activity?
  • What is the interrelationship between taxes on compensation income and the net investment income tax?
  • How will the new tax impact sales and transfer of interests in closely held entities?

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


Joseph C. Mandarino
Joseph C. Mandarino

Stanley Esrey & Buckley

Mr. Mandarino's practice focuses on corporate, tax and finance. He has extensive experience in structuring M&A...  |  Read More

Joseph G. Corsaro
Joseph G. Corsaro

Corsaro & Associates Co.

He counsels businesses and high net worth individuals in business and tax planning using a variety of vehicles, such...  |  Read More

Amy E. Sheridan
Amy E. Sheridan

Sullivan & Worcester

She concentrates her practice in the employee benefits area and is experienced in addressing documentation and...  |  Read More

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