The Internal Revenue Service is once again allowing a one-time opportunity to examine and modify your grouping elections. This has happened a few times now, but this time there is a compelling reason. One of the new tax laws is a 3.8% tax on investment income which also applies to passive income. One of the key ways to manage your passive income is through grouping elections. So now taxpayers have a motivation to avoid passive income, where in the past it was often times advantageous to be generating passive income.

This one-time opportunity is available either in 2013 or 2014, but it is the 2013 tax filing season so people should definitely take a look at it now. The active and passive rules are very complicated and nuanced, but at a basic level you need to prove you spent enough Read More