Thomson Reuters has published a special report on the 3.8 percent net investment income tax that was included as part of the Affordable Care Act, which tax preparers will be calculating for the first time on their clients’ 2013 returns. 

The report explains some of the key differences in the updated rules, the steps for calculating the NIIT, and various business and investment scenarios that may be affected by the tax. The report can help accountants determine which set of regulations to follow when preparing 2013 returns for their clients.

“For 2013 returns, it is critical that tax professionals understand the complex changes presented by the NIIT so they can continue to serve in their clients’ best interests,” said Thomson Reuters tax analyst Robin Christian in a statement. “The report clearly and comprehensively answers fundamental questions, including who owes, what income is included, and what is exempt under these new regulations.”

The special report is available at no cost. It provides insights on the new tax, including clarifications of the types of retirement plan distributions that are exempt from the NIIT. The report also includes information about several favorable provisions that may allow real estate professionals to treat income earned through their profession as non-passive business income exempt from the NIIT.

In addition, the report offers guidance on the simplified process for determining how much of the gain or loss from partnership or S corporation interest disposition is considered held in a non-passive business activity and, thus, may escape the NIIT.

The report also includes an explanation of NOL deduction changes. While the 2012 proposed regulations explicitly prohibited taking into account net operation loss deductions in determining net investment income, the final regulations on the tax potentially allow a portion of the taxpayer’s NOL to reduce net investment income, Thomson Reuters noted.

To access the report, visit https://tax.thomsonreuters.com/NIIT.