Ask Tom Anything - September 24, 2021
Distributions in excess of basis and NIIT plus your new questions answered
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In our last Ask Tom Anything edition, Ronald asked:
Are distributions in excess of basis subject to the net investment income tax (NIIT)?
A simple question has a complex path to a simple answer (which is usually the case in tax law). Below is my step-by-step answer to that question assuming the entity is a S corporation.
S corporation distributions in exce…