The Trump administration continues to push to eliminate the 3.8 percent net investment income tax. The White House revealed the repeal of the tax on net investment income in the Trump administration’s tax reform agenda released in April. This is a huge tax cut for high-income taxpayers who are currently charged the net investment income tax, a levy that applies to individuals who make more than $200,000 a year and $250,000 for married joint filers. The 3.8 percent tax on investment income helps fund the Affordable Care Act.
What a repeal means for individuals and business owners as well as whether it will change how people invest shall be explored in detail at the 29th Annual Insurance Tax Seminar in Washington, D.C. on June 1-2.
The net investment income tax took effect in 2013 under President Obama. It can theoretically hit anyone with consistently high income or with a big one-time shot of income or gain. The net investment income tax, which was enacted as part of the Affordable Care Act, imposes a tax on income from investments that include interest, dividends, short- and long-term capital gains, rental income, income from businesses involved in trading of financial instruments, non-qualified annuities, and commodities and businesses that are passive activities to the taxpayer. It also incorporates gains from the sale of a primary residence.
Removing the net investment income tax will supposedly put more money back into the hands of the wealthy that will then reinvest it into the economy. However, to what extent does tax cuts change strategic business plans when it comes to growing one’s company?
Ivan Thomann (KPMG) will moderate a discussion on June 1 at the Insurance Tax Seminar titled “Investment Tax Update” with Bruce Cohen (Gen Re) and Alan Fu (Prudential Financial). They will explore the pros and cons of selling property or securities in light of the tax consequences and consider whether postponing those transactions is advisable.
Proposed changes to the tax law would have a significant impact on both individual and business taxpayers, including changes to tax rates, deductions, and repeals of existing tax law. Learn from the experts about the latest developments in tax reform and other legislative activity. It’s not too late to sign up and take advantage of early bird rates for the Federal Bar Association’s Insurance Tax Seminar. Attendees will have a unique opportunity on June 1-2 to examine issues relating to the net insurance income tax and other timely tax issues. Register for the Insurance Tax Seminar on or before May 5, 2017 to save on registration at www.fedbar.org/instax17.
Stacy Slotnick, Esq. holds a J.D., cum laude, from Touro Law Center and a B.A., summa cum laude, from the University of Massachusetts Amherst. She performs a broad range of duties as an entertainment lawyer, including drafting and negotiating contracts; addressing and litigating trademark, copyright, patent, and other IP issues; and directing the strategy and implementation of public relations, blogging, and social media campaigns.