Overview
Richard Dees, speaking at an American Law Institute program on proposed IRS net investment income tax rules and their impact on trusts and family businesses, said that if there is an active business at the trust level, the business remains active for the beneficiary under the current rules. While there doesn’t appear to be a clear rule on whether the income would retain its character under Section 469, Mr. Dees added, that issue has now appears to have been resolved, at least for Section 1411 transactions.