There are two ways in which the 3.8 percent net investment income tax (NIIT) can have an impact on your estate plan. It can raise your tax on capital gains, taxable interest and other investment income, thereby lowering the amount of wealth that is accessible to your family. The tax is also especially severe toward specific trusts used in estate planning. <\/p>\n

The NIIT is applicable to net investment income that high income people earn. It is also applicable to trusts and estates to the degree to which their adjusted gross income (AGI) is greater than the low threshold amount of $12,300 in 2015.<\/p>\n

Investment income includes the following:<\/p>\n

taxable interest;\n<\/li>\n
dividends, both qualified and non-qualified;\n<\/li>\n
capital gains, both short and long-term, with the exception of those used in an active trade or business;<\/li>\n
rental income;\n<\/li>\n
royalty income;\n<\/li>\n
non-qualified annuity income;\n<\/li>\n
income derived from passive business activities;\n<\/li>\n
income derived from trading financial instruments or commodities.<\/li>\n<\/ul>\n
Investment income does not include the following:<\/p>\n
- wages, (more…)<\/span><\/a><\/li>\n<\/ul>\n<\/div>\n","protected":false},"excerpt":{"rendered":"
  There are two ways in which the 3.8 percent net investment income tax (NIIT) can have an impact on your estate plan. It can raise your tax on capital gains, taxable interest and other investment income, thereby lowering the amount…<\/span><\/p>\n
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