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Net Investment Income Tax and Grantor Trusts

  • 1.  Net Investment Income Tax and Grantor Trusts

    Platinum Most Valuable Member
    Posted 02-13-2019 08:18
    Good morning.

    my client owns real estate.She qualifies as a real estate professional. She is a grantor to a Grantor trust which also owns Real estate. All is commercial rental property.
    Does the grantor trust " taint" the income and make it subject to the NIIT , or is it truly a  disregarded entity.

    I would suspect it is disregarded.

    Any Comments appreciated.

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    Abby Alhante
    KURCIAS & ALHANTE, CPAs LLC
    Melville NY
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  • 2.  RE: Net Investment Income Tax and Grantor Trusts

    Silver Most Valuable Member
    Posted 02-14-2019 12:43

    All income form a Grantor Trust (that is entirely a Grantor Trust) is reported at the Grantor level.  I would look for any exceptions that may apply such as a 162 Trade or Business or Real Estate Professional.

     

    Very truly yours,

     

    ROBERT S. BARNETT

     

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