IRS Issues Form 8960 Draft Instructions For Determining New Net Investment Tax

The Internal Revenue Service released the 2013 draft instructions to Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts, which will be used to determine the new net investment income tax.

The NII tax, imposed by §1411, applies at a rate of 3.8% to certain net investment income of individuals, estates and trusts that have income above statutory threshold amounts. The draft instructions were released Jan. 6.

Final and proposed rules were issued in November.

The instructions are based mostly on rules that are effective for tax years beginning after 2013, the instructions said. However, they may ...