What is the election for Reg 1.1411–10(g)?

An estate or trust elects for Reg. 1.1411-10(g) if they want to exclude certain passive income from net investment income calculation and tax.

What are passive foreign investment companies (PFICs)?

Passive Foreign Investment Companies (PFICs) are foreign entities that generate income primarily from investing in U.S. assets. If a trust or estate distributes net investment income derived from PFICs, they're subject to the special Net Operating Loss rules of IRC section 1291.

What is economic grouping?

Economic grouping refers to the aggregation of multiple trusts or estates into a single reporting entity. This can be done if they have the same taxpayer-appointed fiduciary, same trustee, or are closely related.

What are the income thresholds for individuals?

The income thresholds for individuals determine whether they're subject to the Net Investment Income Tax (NIIT). The thresholds vary depending on filing status.

What is net investment income?

Net investment income includes interest, dividends, rents, royalties, and other income that isn't effectively connected with the conduct of a trade or business.

What is disposition of property, gains and losses?

Disposition of Property refers to the sale, exchange, or other disposal of an asset during a tax year. The result could be ordinary gain or loss depending on the taxpayer's situation, and whether it relates to passive income or investment income.

What are estates and trusts, application of Net Investment tax?

Estates and trusts calculate and report their net investment income tax in accordance with IRC section 1411. They do this if they have net investment income and distribute it or are required to file a return.

What is the election, Form 8814?

Form 8814 is an estate or trust's application for changes to their tax year status. They may use it to elect out of a passive activity, change their reporting entity, or request permission from the IRS to use a simpler method for calculating NIIT.

What should be reported on Form 8960, Schedule G and Schedule F?

Form 8960 filers report their net investment income tax, Schedule G includes the calculation and payment of NIIT, while Schedule F shows the trust's or estate's expenses related to the calculation and payment of NIIT.

What is the Net Investment Income Tax (NIIT)?

The Net Investment Income Tax (NIIT) is a tax imposed on estates and trusts if they have net investment income and: 1. Distributed it during the tax year, or 2. Are required to file a return.

Who needs to file Form 8960?

An estate or trust files Form 8960 if it has net investment income and either: (1) distributed net investment income during the tax year, or (2) is required to file a return of income.

What is Form 8960 used for?

Form 8960 is used by estates and trusts to calculate and report the net investment income tax (NIIT) imposed by section 1411 of the Internal Revenue Code.

What is Section 1291?

Section 1291 refers to a special provision in the Internal Revenue Code for Passive Foreign Investment Companies (PFICs). PFIC distributions to estates and trusts are subject to the Net Operating Loss rules of this section.

What is disposition of interest?

Disposition of Interest refers to the transfer or sale of an asset generating income, such as interest, during a tax year. This could result in either ordinary gain or loss depending on the taxpayer's situation.

What are the elections for investment income?

Estate and trusts have the option to elect different methods to calculate and report their net investment income tax. These options include using section 1411-10(g), or electing out of passive activities.

Form 8960

Fill out this form

Chat with document

Download PDF (75.5 KB)

Net Investment Income Tax„Individuals, Estates, and Trusts

Rev. 2023

Form 8960 is a tax form for individuals, estates, and trusts to report net investment income. The form includes sections for taxable interest, ordinary dividends, annuities, rental real estate and royalties, adjustments for net income or loss, net gain or loss from disposition of property, adjustments to investment income for certain CFCs and PFICs, other modifications, total investment income, investment expenses allocable to investment income and modifications, net investment income, modified adjusted gross income, threshold based on filing status, and calculation of net investment income tax. The form provides instructions for each section and requires the inclusion of relevant information for the calculation of the tax.

Instructions

Form 8960 Instructions - Instructions for Form 8960, Net Investment Income Tax„Individuals, Estates, and Trusts

Search tags

FAQ

What is the election for Reg 1.1411–10(g)?
An estate or trust elects for Reg. 1.1411-10(g) if they want to exclude certain passive income from net investment income calculation and tax.
What are passive foreign investment companies (PFICs)?
Passive Foreign Investment Companies (PFICs) are foreign entities that generate income primarily from investing in U.S. assets. If a trust or estate distributes net investment income derived from PFICs, they're subject to the special Net Operating Loss rules of IRC section 1291.
What is economic grouping?
Economic grouping refers to the aggregation of multiple trusts or estates into a single reporting entity. This can be done if they have the same taxpayer-appointed fiduciary, same trustee, or are closely related.
What are the income thresholds for individuals?
The income thresholds for individuals determine whether they're subject to the Net Investment Income Tax (NIIT). The thresholds vary depending on filing status.
What is net investment income?
Net investment income includes interest, dividends, rents, royalties, and other income that isn't effectively connected with the conduct of a trade or business.
What is disposition of property, gains and losses?
Disposition of Property refers to the sale, exchange, or other disposal of an asset during a tax year. The result could be ordinary gain or loss depending on the taxpayer's situation, and whether it relates to passive income or investment income.
What are estates and trusts, application of Net Investment tax?
Estates and trusts calculate and report their net investment income tax in accordance with IRC section 1411. They do this if they have net investment income and distribute it or are required to file a return.
What is the election, Form 8814?
Form 8814 is an estate or trust's application for changes to their tax year status. They may use it to elect out of a passive activity, change their reporting entity, or request permission from the IRS to use a simpler method for calculating NIIT.
What should be reported on Form 8960, Schedule G and Schedule F?
Form 8960 filers report their net investment income tax, Schedule G includes the calculation and payment of NIIT, while Schedule F shows the trust's or estate's expenses related to the calculation and payment of NIIT.
What is the Net Investment Income Tax (NIIT)?
The Net Investment Income Tax (NIIT) is a tax imposed on estates and trusts if they have net investment income and:
1. Distributed it during the tax year, or
2. Are required to file a return.
Who needs to file Form 8960?
An estate or trust files Form 8960 if it has net investment income and either: (1) distributed net investment income during the tax year, or (2) is required to file a return of income.
What is Form 8960 used for?
Form 8960 is used by estates and trusts to calculate and report the net investment income tax (NIIT) imposed by section 1411 of the Internal Revenue Code.
What is Section 1291?
Section 1291 refers to a special provision in the Internal Revenue Code for Passive Foreign Investment Companies (PFICs). PFIC distributions to estates and trusts are subject to the Net Operating Loss rules of this section.
What is disposition of interest?
Disposition of Interest refers to the transfer or sale of an asset generating income, such as interest, during a tax year. This could result in either ordinary gain or loss depending on the taxpayer's situation.
What are the elections for investment income?
Estate and trusts have the option to elect different methods to calculate and report their net investment income tax. These options include using section 1411-10(g), or electing out of passive activities.

HOW TO

How to fill out Form 8960 for free, online in 3 easy steps:

1
Open form template in editor
Click on the “Get this template” button.
2
Fill out Form 8960
Wait a moment and you will be redirected to our online PDF Filler app.
3
Download file
Download your completed Form 8960 for free. You can also save it to a cloud storage.

ABOUT

Internal Revenue Service (IRS) Forms

Form 8960 is one of the official tax forms used in the United States to report income, claim deductions and credits, calculate tax liability, and fulfill other tax-related obligations. The IRS is the federal agency responsible for administering and enforcing the internal revenue laws in the United States.

Here are some examples of Internal Revenue Service forms:

Form 1040: This is the primary individual income tax return form used by most taxpayers. It is used to report various types of income, claim deductions and credits, calculate tax liability, and determine whether a taxpayer owes additional tax or is entitled to a refund.

Form 1099: There are different variations of Form 1099, such as 1099-MISC, 1099-INT, 1099-DIV, etc. These forms are used to report income received by individuals or businesses from various sources other than employment, such as self-employment income, interest income, dividend income, and rental income.

Form W-2: This form is used by employers to report wages paid to employees and the taxes withheld from their pay. Employees use the information on Form W-2 to complete their individual tax returns.

Form 941: Employers use this form to report employment taxes, including federal income tax withheld, Social Security tax, and Medicare tax, for their employees.

Form 1065: This form is used by partnerships to report their income, deductions, and tax liability. Partnerships themselves do not pay income tax; instead, the partners report their share of partnership income on their individual tax returns.

Form 1120: This is the corporate income tax return form used by C corporations to report their income, deductions, and tax liability.

Form 990: This form is used by tax-exempt organizations, such as nonprofits and charities, to report their financial information, activities, and compliance with tax laws.

Form 8862: This form is used by taxpayers who previously claimed the Earned Income Tax Credit (EITC) but had it disallowed, and now want to claim it again.

These are just a few examples of the numerous IRS forms that exist to fulfill various tax-related obligations. The specific forms required for an individual or business depend on their unique circumstances, income sources, and deductions. It's advisable to consult the official website of the Internal Revenue Service (www.irs.gov) or seek professional tax advice to obtain accurate and up-to-date information regarding the specific IRS forms relevant to your tax situation.

FEATURES

PDF Filler

The easiest way to fill Form 8960 online

Quickly fill out Form 8960
Looking for a way to quickly fill Form 8960 online? With our online free PDF form filler, you’ll know how to how to edit and fill this pdf document in less than a minute.
Easy to use online PDF editor
Fed up with printing out PDF files so you can edit them, before rescanning and sending them back? Edit PDF documents for free online. Use our online pdf editor to save time and paper.
Great tools, all platforms
Wondering how to fill in Form 8960 on a Mac, or maybe how to use a PDF filler free? Our online PDF tools work on all platforms.
Secure file storage
Completed "Form 8960" files are stored in a secured database managed by Amazon Cloud hosting. You can delete your files from our system anytime. In any case, these files are automatically deleted after 24 hours.
Chat with Form 8960
Chat with "Form 8960" on Chatize that is a free PDF reader assistant. Ask questions and get answers from "Form 8960". Just click on Chat With Document button above.

Products

Docs

Websites

About