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2013 Tax on Net Investment Income Tips Online Resources
Most folks are aware of the new 2013 tax on net investment 2013 Emerging Leaders Certificate Program
income (the Obama Care Tax). However, not as widely discussed Announced
is the application of Obama Care tax to estates and trusts. For
these entities the tax will apply when undistributed income is only CalCPA, Education Foundation Slates
$11,650 (as adjusted for inflation). UPS Savings Program Sweepstakes: Win a
Here’s an idea to delay the 3.8 percent Obama Care tax for Trip for Two to Las Vegas
estates and trusts. The new tax is effective for tax years Forensic Services Section Membership
beginning after 2012. Here’s an example: Special Offer
Your client passed away in January 2012. Normally you’d do FASB Issues Update on Foreign Currency
nothing and file a 2012 calendar year return (without the 3.8 Matters
percent tax) and a 2013 calendar year return (with the 3.8 percent
tax). Instead, the estate should elect a Nov. 30 fiscal year end
(FYE). So you file an FYE Nov. 30, 2012, return (without the 3.8
percent tax) and an FYE Nov. 30, 2013, return. Now you’ve
Education Foundation
eliminated the 3.8 percent tax for the first eleven months of 2013. Courses/Conferences
The election is made on a timely filed income tax return so, in our
example, the FYE Nov. 30, 2012, return is due March 15, 2013. Internal Control: Your Number-­One Defense
Against Errors and Fraud -­ 4121303E -­
Moreover, a revocable trust, which is normally unable to use a Monday, March 18 -­ Universal City
fiscal year end, can elect to be taxed as an estate (or with the
estate)—thereby achieving the same result. This is done by filing Basic Concepts of Governmental
Form 8855, which in our example, would also be due March 15. Accounting, Financial Reporting and
Auditing Webcast -­ 4121646C -­ Tuesday,
—By Michael B. Allmon, CPA March 19 -­ Online
and Robert M. Birgen, CPA (inactive), PFS, CFP, CIMA
Basic Concepts of Governmental
Accounting, Financial Reporting and
Auditing -­ 4121646B -­ Tuesday, March 19 -­
San Mateo
This entry was posted on Tuesday, February 19th, 2013 at 2:10 pm and is filed under
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Accounting and Auditing Update -­ 4121010K
You can leave a response, or trackback from your own site. -­ Tuesday, March 19 -­ Universal City
The Accountant's Responsibility for Fraud -­
4121051F -­ Wednesday, March 20 -­ Santa
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