Final IRS rules provide guidance to colleges and universities on net investment income (NII) tax. The rules are to determine the 1.4% excise tax on the NII of applicable educational institutions. The tax doesn’t apply to state colleges and universities. It applies to institutions that in the preceding tax year had at least 500 tuition-paying students, with more than 50% located in the U.S. The aggregate fair market value of their assets (other than the assets used directly in carrying out their exempt purpose) was at least $500,000 per student. The final regs adopt, with certain modifications and clarifications, the proposed regs issued in July 2019. Call or visit our website for more information! www.mjscpa.com/
