Implications of net investment income tax for asset managers

July 2013
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Implications of net investment income tax for asset managers

At a glance

The Patient Protection and Affordable Care Act of 2010 passed a new Medicare tax of 3.8% on Net Investment Income ("NII"), effective January 1, 2013. Although this new tax is applied at the individual level, partners will require a thorough analysis of their "net investment income" from pass-through entities.

As a follow-up to our webcast on January 31, 2013 regarding NII tax, this document provides an overview of the issues raised by the proposed regulations and PwC's recommendations for further IRS guidance, and highlights some of the key NII tax planning and reporting issues and considerations.