Question

Ronald Trunk is single and independently wealthy. In 2018, Ronald’s investment income is $110,000 (all interest) and his adjusted gross income is $380,000. He has no investment expenses associated with this income, no foreign earnings exclusion, and lives where there is no state income tax. Complete Form 8960 to calculate Ronald's 2018 net investment income tax. Enter all amounts as positive numbers.

Answer 1

Tax = 110000*3.8% = 4180

f8960--2018.pdf - Adobe Acrobat Pro DC X File Edit View Sign Window Help Home Tools f8960--2018.pdf х ? 1 / 1 67.1% + xle 110000 8960 Net Investment Income Tax- OMB No. 1545-2227 Form Individuals, Estates, and Trusts 2018 Department of the Treasury Attach to your tax return. Attachment Internal Revenue Service (99) Go to www.irs.gov/Form8960 for instructions and the latest information. Sequence No. 72 Name(s) shown on your tax retum Your social security number or EIN Ronald Trunk Partl Investment Income Section 6013(g) election (see instructions) Section 6013/h) election (see instructions) Regulations section 1.1411-10(g) election (see instructions) 1 Taxable interest (see instructions). 1 110000 2 Ordinary dividends (see instructions) 2 3 Annuities (see instructions) 3 4a Rental real estate, royalties, partnerships, S corporations, trusts, etc. (see instructions) . . 4a b Adjustment for net income or loss derived in the ordinary course of a non-section 1411 trade or business (see instructions) 4b c Combine lines 4a and 4b 4c 5a Net gain or loss from disposition of property (see instructions) 5a b Net gain or loss from disposition of property that is not subject to net investment income tax (see instructions) 5b c Adjustment from disposition of partnership interest or corporation stock (see instructions) 5c d Combine lines 5a through 5c 5d 6 Adjustments to investment income for certain CFCs and PFICs (see instructions) 6 7 Other modifications to investment income (see instructions) 7 8 Total investment income. Combine lines 1, 2, 3, 4, 5d, 6, and 7 8 Part II Investment Expenses Allocable to Investment Income and Modifications 9a Investment interest expenses (see instructions) 9a b State, local, and foreign income tax (see instructions) 9b c Miscellaneous investment expenses (see instructions) 9c d Add lines 9a, 9b, and 9c 9d 10 Additional modifications (see instructions) 10 11 Total deductions and modifications. Add lines 9d and 10 11 Part III Tax Computation 12 Net investment income. Subtract Part II, line 11, from Part 1, line 8. Individuals, complete lines 13-17. Estates and trusts, complete lines 18a-21. If zero or less, enter-O- 12 Individuals: 13 Modified adjusted gross income (see instructions) 13 380000 14 Threshold based on filing status (see instructions) 14 200000 15 Subtract line 14 from line 13. If zero or less, enter-O- 15 180000 Enter the smaller of line 12 or line 15. .... 16 110000 17 Net investment income tax for individuals. Multiply line 16 by 3.8% (0.038). Enter here and include on your tax return (see instructions) 17 4180 Estates and Trusts: 18a Net investment income (line 12 above) 18a b Deductions for distributions of net investment income and deductions under section 642(c) (see instructions) 18b c Undistributed net investment income. Subtract line 18b from 18a (see instructions). If zero or less, enter-O- 18c 19a Adjusted gross income (see instructions) 19a b Highest tax bracket for estates and trusts for the year (see instructions) 19b c Subtract line 19b from line 19a. If zero or less, enter-0- 19c 20 Enter the smaller of line 18c or line 19c. . 21 Net investment income tax for estates and trusts. Multiply line 20 by 3.8% (0.038). Enter here and include on your tax return (see instructions) 21 For Danand Daduction Act Notice so your tax return instructione Form 896012018 110000 20 I+ Cat Mo AM

Please rate.