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NIIT exclusions from a k-1

How do I exclude certain investment income from a k-1 that is not subject to NIIT?
1 Reply
Level 12

NIIT exclusions from a k-1

You will most likely need to go into the forms mode and make the applicable adjustments directly on form 8960.

However, you need to make sure that what you are doing is consistent with the exclusion provisions.  These are confusing regulations and 4 tests that must be met before your investment income can be excluded.  Other exceptions are self-charged interest and gains on a sale of an interest if the taxpayer materially participated.

The above is just a high level overview.  Further guidance is probably beyond the scope of this forum; too many facts to digest and best resolved one on one.

*A reminder that posts in a forum such as this do not constitute tax advice.*
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