Ask Tom Anything - September 24, 2021

Distributions in excess of basis and NIIT plus your new questions answered

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…

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