On November 26, 2013, the IRS released final regulations under Internal Revenue Code (IRC) § 1411. The new regulations govern the laws related to the net investment income tax that was created by the Affordable Care Act of 2010. In addition to the final regulations, the IRS issued new proposed regulations on the computation of net investment income as it relates to the sale of interests in partnerships and S Corporations. The final and newly proposed regulations address many of the comments and concerns that were brought to the IRS regarding the original proposed regulations. In general, the final regulations retain the same foundations as the proposed regulations with certain notable modifications.
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