On November 26th, 2013, the IRS released final and new proposed regulations regarding the Net Investment Income tax. The final regulations covered a wide range of issues, including: withdrawing a proposed method of calculating net gain or loss from the disposition of a pass through entity; allowing a taxpayer to regroup activities on an amended return if the otherwise non-qualifying taxpayer becomes qualifying; and providing special rules for self-rented property and self-charged interest income.

Treasury also issued proposed regulations providing revised rules for the calculation of net gain from the disposition of a partnership interest or S corporation stock. The new proposed regulations also address the treatment of section 707(c) guaranteed payments for capital, section 736 payments for section 1411 purposes, certain capital loss carryovers, and special rules on charitable remainder trusts. The IRS stated that the newly proposed regulations will have the same effective date as the final regulations, but any provisions adopted at finalization that are more restrictive than the proposed regulations would apply going forward.