1.7K views · 39 reactions | Here’s something most tax preparers don’t know. Managers of LLCs are exempt from the Net Investment Income Tax (NIT) under IRC §1411(c)(2)(A). | Mark Lewis | Facebook

One of the other taxes that can come into play during Roth conversion planning is the net investment income tax. This is an extra 3.8% tax that applies to certain types of investment income once your income crosses specific thresholds. This tax does not apply to money coming out of an IRA, so it doesn’t affect the Roth conversion itself or IRA withdrawals used to pay the tax, but it can apply to dividends, interest income, capital gains, passive business income, and even rental real estate incom