Avoiding the Net Investment Income Tax | Melton & Melton The Patient Protection and Affordable Care Act not only brought us Obamacare, but also the Net Investment Income Tax or NIIT. This new tax, which is a Medicare surtax, is a 3.8% tax on various types of investment income received by certain individuals, trusts, and estates. 26 U.S. Code § 1411 - Imposition of tax | U.S. Code | US ... Net investment income shall not include any item taken into account in determining self-employment income for such taxable year on which a tax is imposed by section 1401(b). (d) Modified adjusted gross income For purposes of this chapter, the term “ modified adjusted gross income ” means adjusted gross income increased by the excess of—
Consider net investment income tax for rental income ... However, rental income is subject to the 3.8 percent net investment income tax (NIIT). Net investment income includes but is not limited to gross income from interest, dividends, net capital gains, non-business rental income, and non-business royalty income.
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How Does the Net Investment Income Tax Apply to Rental ... Jul 17, 2017 · Net Investment Income Tax basics. The NIIT only applies to certain high-income taxpayers. Specifically, taxpayers with adjusted gross income of more than $200,000 (single filers) or $250,000 (joint filers) are subject to the surtax on investment income that exceeds the thresholds. Note that these amounts are not indexed for inflation. Net Investment Income Tax | H&R Block You’ll be subject to the 3.8% Medicare tax on net investment income if both of these are true: You have unearned income for 2013 or later years. Your modified adjusted gross income (AGI) for the year is more than the threshold amount. This tax is also known as the net investment income tax (NIIT). Easy Net Investment Income Tax Calculator – Internal ...
As an investor, you may owe an additional 3.8% tax called net investment income tax (NIIT). But you’ll only owe it if you have investment income and your modified adjusted gross income (MAGI) goes over the IRS threshold.