Weekly Tax Tips October 7th

Trivia Question❓

Answer at the bottom of the newsletter

The Net Investment Income Tax (NIIT) is a 3.8% tax that applies to certain types of investment income for individuals, estates, and trusts with higher income levels. For business owners, understanding NIIT is crucial, as it can significantly impact overall tax liability, especially if they have investment income, such as dividends, interest, capital gains, or rental income. 

To navigate the NIIT effectively, business owners should first determine whether their income exceeds the thresholds—$200,000 for single filers and $250,000 for married couples filing jointly. If so, proactive strategies can help minimize its impact. 

One approach is to consider tax-efficient investment strategies, such as focusing on tax-exempt or tax-deferred investments, like municipal bonds or retirement accounts, which can help reduce the amount of taxable investment income. Additionally, business owners should review their income sources and consider the timing of capital gains. By strategically planning asset sales to fall in years with lower overall income, they may avoid triggering the NIIT.

Furthermore, investing in qualified opportunity zones can provide not only growth potential but also tax deferral benefits, mitigating NIIT exposure. Finally, regular consultations with tax professionals can help identify opportunities for deductions and credits that can lower taxable income, ultimately reducing the NIIT liability. By implementing these strategies, business owners can effectively manage their tax burden and focus on growing their enterprises.



Make Your Funeral A Teaching Moment

Stan Miller is a nationally recognized estate planning attorney, a #1 Amazon best-selling author, the co-host of the Your Life Your Legacy podcast, and one of the cofounders of Wealth Counsel, the largest estate planning software program used by estate attorneys.

On this educational lunch and learn, Stan will share:

Your death is an occasion to share your wisdom, life lessons and some of the stories of your life many people don’t know.

This is an opportunity that should not be wasted.

The people who are most important in your life will be there. Their children, and perhaps their grandchildren, will also be there. For a few hours, you will be the focus of their attention. You can make this a powerful teaching moment.

Register now and learn how to Make Your Funeral A Teaching Moment

Your lunch instructions will be in your confirmation email and text, so make sure to enter your correct email and cell phone numbers. 

Date: Thursday, October 24th, 2024

Time: 12-1PM Eastern

Place: Zoom

Register here

💡 Answer to Trivia Question: