How to Avoid Exposure to the 3.8% Passive Investor Tax
Effective January 1, 2013, Section 1411 of the Internal Revenue Code imposes a 3.8% income tax (“Passive Investor Tax”) on investors who do not materially participate in the operations of a partnership or S Corporation. The Passive Investor Tax applies to any individual making over $200,000 of net investment income in a tax year, or […]