For tax year 2017, estates and trusts are subject to the net investment income tax if they have AGI exceeding what amount?

For tax year 2017, estates and trusts are subject to the net investment income tax (NIIT) if their adjusted gross income (AGI) exceeds $12,500. This threshold is important because the NIIT imposes an additional 3.8% tax on certain net investment income, which includes interest, dividends, capital gains, rental income, and other passive income.

Estates and trusts operate under specific tax rules different from individual taxpayers, and they face this tax based on their AGI exceeding the established threshold. The $12,500 figure is significant as it reflects the IRS regulations and provides a clear limit at which this additional tax begins to apply.

Understanding this threshold helps in accurately calculating the tax liability for estates and trusts, enabling tax professionals to advise their clients correctly on potential tax implications of investment income.