This article describes how the net investment income tax may affect Americans living abroad.
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TOPICS / INDIVIDUALS
Income
Earnout Restriction Causes Substantial Risk of Forfeiture
The Tax Court held that sections of a restricted stock agreement and an employment agreement read together constituted an earnout restriction that might create a substantial risk of forfeiture for stock transferred to an employee.
Condemnation of Pipeline Easements: The Landowner’s Perspective
This article examines income tax issues that commonly arise in connection with the conveyance of pipeline easements and surface sites and identifies planning opportunities.
Individual Taxation: Digest of Recent Developments: Part I
This article is Part I of a two-part article covering recent developments affecting taxation of individuals, including regulations, cases, and IRS guidance.
Final Substantial-Risk-of-Forfeiture Rules Are Released
The IRS finalized regulations that clarify when a substantial risk of forfeiture exists on the transfer of stock to an employee that is treated as compensation under Sec. 83 (T.D. 9659).
Earnout Restriction Causes Substantial Risk of Forfeiture
The Tax Court held that sections of a restricted stock agreement and an employment agreement read together constituted an earnout restriction that might create a substantial risk of forfeiture for stock transferred to an employee.
3.8% Net Investment Income Tax Regulations
The IRS issued final and proposed regulations giving guidance on the application and computation of the 3.8% net investment income tax imposed by Sec. 1411.
Current Developments for Straddle Transactions
This item provides a brief background and summary of IRS regulations clarifying whether an obligor’s debt could be part of a straddle and the treatment of prestraddle gain or loss related to a position that is part of a “mixed straddle”.
Final Regs. Prescribe Treatment of Bond Premium Carryforward
The IRS issued final regulations on the tax treatment of debt instruments with bond premium carryforward in the holder’s final accrual period.
Guidance Issued on Tax Treatment of National Mortgage Settlement Payments
The IRS issued guidance on the correct tax treatment of payments taxpayers receive under the National Mortgage Settlement when their house is foreclosed on.
Tax Issues for Individuals Who Create Intellectual Property
This article discusses the unique tax issues facing creators of intellectual property, particularly federal income tax treatment for individual taxpayers.
Sec. 631(b) and the Taxation of Standing Timber Sales
Under Sec. 631(b), gains or losses from the sale of standing timber are considered gains and/or losses from the sale of business use property.
Final and Proposed Regs. Issued on 3.8% Net Investment Income Tax
The IRS issued final and proposed regulations giving guidance on the application and computation of the 3.8% net investment income tax imposed by Sec. 1411.
Nonresident Alien Gamblers Get Similar Treatment as U.S. Gamblers
The D.C. Circuit held that nonresident aliens should measure their gambling gains and losses under the “per-session” approach, the same method that U.S. citizens follow, instead of a "per-bet" approach.
Qualified Small Business Stock: An Opportunity for Tech Startups
The existence of convertible debt, incentive stock options, warrants, and preferred stock, along with the need for additional capital, creates opportunities for tech companies to issue additional qualified small business stock in 2013.
Gambling Gains for Nonresidents Now the Same as for U.S. Residents
A decision by the D.C. Circuit puts nonresident aliens’ gambling gains on a closer footing to those of U.S. residents.
Excluding Part of the Gain From the Sale of a Residence
A portion of the gain from the sale of a principal residence can be excluded when the taxpayer fails to meet the requirements for full exclusion of gain when the primary reason for selling or exchanging the principal residence was a change in place of employment, health, or unforeseen circumstances.
Draft Net Investment Income Tax Form Posted
In August, the IRS released a draft dual-purpose form that will be used by individuals and trusts and estates to compute and report the new 3.8% net investment income tax.
Individual Tax Report
This article covers recent developments in individual taxation. The items are arranged in Code section order.
AICPA: Net Investment Income Tax Needs Fixing
The AICPA, in a letter from Jeffrey Porter, chair of the AICPA Tax Executive Committee, submitted comments to the IRS, recommending many changes to the proposed regulations on the new net investment income tax.
INDIVIDUALS
Current Developments in Taxation of Individuals: Part 1
This update surveys recent federal tax developments involving individuals, including court cases, rulings, and guidance issued during the six months ending October 2025.
