Self-Employment Tax and NIIT for LLCs and High Income Individuals
Minimizing Tax Through Activity Groupings, Self-Charged Interest, Blocker Corporations
Note: CLE credit is not offered on this program
Recording of a 110-minute CPE webinar with Q&A
This course will provide tax advisers with a practical guide to navigating the net investment income tax (NIIT) rules as they apply to self-employed taxpayers and offer tax reduction strategies for minimizing the NIIT. The panel will discuss NIIT calculations and planning opportunities.
Outline
- Introduction
- FICA and SET basics
- NIIT basics
- Members and Self-Employment Tax
- The limited partner exception
- Case law and rulings
- LLC Members and NIIT
- Rental real estate activities: real estate professionals
- The limited partner material participation problem
- Trusts and Estates
- Planning problems and opportunities
- The problem with S corporations and S corporation blockers
- Properly structured LLC and LPs
- Effect of grouping activities
- Self-charged interest and rent
- Avoiding NIIT through material participation and significant participation
- Net gain from dispositions
- Other strategies to minimize NIIT
- Tax Reform Proposals
Benefits
The panel will review these and other vital issues:
- Interpreting the gaps in IRS regs using recent case law to confirm whether self-employment tax applies to limited partners
- Application of the NIIT to real estate activities and LLC members generally
- NIIT tax mitigation strategies for trusts and estates
- Evaluation of S corporation and S corporation blocker strategies
- Grouping activities among entities and partners to meet the material participation test
- The treatment of self-charged interest and self-charged rent under the NIIT rule
- Application of NIIT to net gain from dispositions of properties and LLC interests
- Prospects for future legislative or regulatory changes
Faculty
James R. Browne
Partner
Barnes & Thornburg
Mr. Browne advises clients on the U.S. income tax aspects of domestic and international business transactions and... | Read More
Mr. Browne advises clients on the U.S. income tax aspects of domestic and international business transactions and matters involving federal, state and foreign taxes. With more than 35 years of experience, he handles complicated tax and financing issues for a diverse range of clients. He has experience advising sellers and purchasers on tax aspects of business acquisitions involving both strategic and financial purchasers, preparing tax disclosures for debt and equity offering documents, advising clients on tax aspects of forming, funding, and reorganizing corporate and partnership entities, and advising clients on tax and financing aspects of international operations.
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Minna C. Yang, JD, MS, CPA
Partner
Wagner Kirkman Blaine Klomparens & Youmans
With over 30 years of extensive experience, Ms. Yang is a member of her firm's Business Transactions... | Read More
With over 30 years of extensive experience, Ms. Yang is a member of her firm's Business Transactions department, which practices in taxation, business matters, real estate, estate planning, and probate. She not only provides direct representation to clients but also serves as a practiced resource to clients' primary accountants, financial advisers, and other representatives. She began her career as an accountant and has an extensive background as a CPA and Auditor for the State Board of Equalization.
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CPE credit is not available on downloads.
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