Thursday, August 15, 2013
The IRS recently released 2013 draft Form 8960 to help the beneficiaries of charitable remainder trusts compute the new 3.8% surtax on net investment income.
Some items reported on a beneficiary’s Schedule K-1, such as grandfathered dollars, will not be subject to the tax because they do not meet the definition of net investment income. The IRS has included an adjustment in the 2013 Schedule K-1 draft instructions to account for this fact.
See Daily Tax Report, IRS Draft Form 8960 on Net Investment Income Addresses CRTs, Bloomberg BNA, Aug. 8, 2013.