During the last several years, the 3.8% net investment income tax (NIIT) has ensnared a steadily increasing number of taxpayers. Why? Because when the tax was enacted 11 years ago it applied to “high earners” — defined as single filers with modified adjusted gross income (MAGI) over $200,000 and joint filers with MAGI over $250,000. Those thresholds have never been adjusted for inflation. As a result, the number of taxpayers liable for NIIT has more than doubled during that time. This article explains how the NIIT works and provides strategies to reduce it. A sidebar explores whether a Roth IRA conversion might reduce NIIT liability.

If a business expands its geographical footprint beyond state or U.S. borders, it’s important to understand the transfer pricing rules. In a nutshell, transfer pricing refers to cross-border pricing arrangements for transactions between related companies (including parent and subsidiary or brother-sister companies with a common parent) in different jurisdictions. This article explains why these rules matter and how they’re regulated.

A custodial account may be the answer for parents who are seeking a tax-efficient way to help their minor-aged child save for college or other expenses. This article examines two types of custodial accounts and details their pros and cons.

These brief tips explain a tax rule change regarding Roth account catch-up requirements; detail why taxpayers should still file a tax return even if they’re unable to pay the tax due; and explore whether individuals can deduct online sports betting losses.