Tax simplification for private foundations

Tax simplification for private foundations

2020-02-04

The Taxpayer Certainty and Disaster Tax Relief Act of 2019 reduced the 2% excise tax on net investment income of private foundations to 1.39%, and repealed the 1% special rate that applied if the private foundation met certain distribution requirements. 

The changes are effective for taxable years beginning after December 20, 2019.