Source: Motley Fool —
Key Points
- The net investment income tax may be expanding.
- This rule change could have an impact on real estate professionals.
- The instructions for how to comply will require help from a tax advisor.
As we approach the end of 2021, many real estate investors are already thinking of the 2022 tax season — and for good reason. A new administration almost always adopts new rules and regulations, and the tax code is no exception.
One of the targets of the administration of President Joe Biden is the net investment income tax (NIIT), and perhaps rightfully so. For 2021, the government will raise $27.5 billion in revenue generated from net investment income tax alone, according an analysis by the Congressional Research Service.
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