This Filing Season, Ensure Proper Reporting of Excise Tax on Net Investment Income
Author: Katherine E. David.
Source: Volume 14, Number 03, March/April 2015 , pp.1-5(5)
< previous article |next article > |return to table of contents
Abstract:
IRC §4940 imposes a 2% excise tax on a private foundation’s net investment income. This article explains, in clear step-by-step fashion, how to calculate income, gains, losses, and deductions for the types of income subject to the excise tax,including interest, dividends, rents, royalties, payments with respect to securities loans, and net capital gains over capital losses, and also addresses the question of what is not subject to the excise tax, including income subject to the unrelated business income tax.Keywords: IRC §4940; IRC §511; distribution requirements; Form 990-PF
Affiliations:
1: Strasburger & Price, LLP.