Tax Warrior Chronicles

Rogue One: A Single Tax on Foundation Investment Income Story

Posted on Wed, Jan 22, 2020

By: Keisha Price, CPA, MST

 

A Long Time Ago in a Tax System Far, Far, Away…Private Foundations were subject to a 2% tax on net investment income generated from the Foundation’s charitable assets. This 2% tax could be reduced to 1% if the foundation’s current year charitable distributions exceeded its average charitable distributions over the prior five years…until now!

 

Makes Sense Right?

Well yes! It makes sense for a foundation with a clear charitable purpose, effective directorship, and meaningful assets to give more for the greater good of the galaxy each year and that deserves a tax break.

 

Constructing the Death Star

Let’s say the good and benevolent founder of the foundation

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Final Regs for Obamacare 3.8% Net Investment Income Tax Released

Posted on Tue, Dec 10, 2013

The Affordable Care Act (ACA), aka “Obamacare” has experienced its share of bad press since it was signed into law in 2010. Critics point to many unknowns and confusing language within the law.  Whether you are in support of the ACA or not, it’s fair to say that it is confusing to many Americans and in need of further clarity. The tax provisions within the law, which put into place a 3.8% surtax on net investment income, are no different. Thankfully, the IRS has released final regulations that clarify some issues that were previously unclear.

 

About one year after the proposed regulations for Internal Revenue Code (“IRC”) Section 1411, the IRS recently released Reg. §1.1411, which has more

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