Reducing (Self-) Employment and NII Taxes in Passthrough Entities

Authored by CCH Editorial Staff
About this Course
This course discusses the Federal Insurance Contribution Act tax (FICA or employment tax), the Self-Employment Contribution Act tax (SECA or self-employment tax), the additional Medicare tax, and the net investment income (NII) tax in the context of passthrough entities. It also discusses a planning technique that can be used to minimize the amounts of these taxes by operating the taxpayer’s trade or business as an S corporation, rather than a partnership. Finally, it briefly reviews the application of these taxes to general and limited partners and explains why an S corporation may be a better vehicle for avoiding these taxes than a limited partnership. Upon completion of this course, you will be able to: recognize some of the taxes that apply to the owners of passthrough entities; identify circumstances when employment taxes, self-employment tax, additional Medicare tax, and net investment income tax apply in the context of trades or businesses conducted by passthrough entities; and recognize how S corporations can be used to minimize the combined amount of FICA, SECA, additional Medicare tax, and NII tax paid by the owners of a trade or business.
$ 24.00
Course is unavailable for purchase.
NASBA Field of Study
Taxes
Level
Intermediate
CPE Credits
2.0
Prerequisites
Basic understanding of self-employment and NII taxes
Last Updated
10/30/2015
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