Year-end tips for reducing NIIT
Abstract: As 2016 winds down, one tax that advisors focus on is the net investment income tax (NIIT). This tax adds 3.8% to individual income tax rates. This article highlights several year-end planning strategies to consider that can reduce or eliminate the tax. A sidebar notes that a trustee might be able to reduce or eliminate NIIT by distributing a nongrantor trust’s income to its beneficiaries.