Tag Archives: TAM 201317010

U.S.TAX COURT DECISION MAY ALLEVIATE THE 3.8% NET INVESTMENT INCOME TAX BURDEN FOR MANY TRUSTS

Because trusts are subject to the 3.8% Net Investment Income Tax at a very low income level, $12,150 for 2014, trustees of trusts owning interests in operating entities have been considering ways to meet the material participation requirements to avoid this tax. As discussed in a prior post, differing points of view have arisen regarding … Continue Reading

Beware: Active Participation of S-Corporation Trustee Shareholder is Required – Technical Advice Memorandum 201317010

By Christopher Fidler on August 6, 2013 Posted in Estate Planning, Tax, Trust Administration

Differing points of view have arisen regarding determining the active participation of S-Corporation shareholdings held in Trust. The uncertainty centers on IRC § 469. Section 469 defines a passive activity as any activity that involves the conduct of any trade or business in which the taxpayer does not materially participate, and the section specifically includes … Continue Reading