Am I Subject to the Net Investment Income tax?
Effective January 1, 2013, the Net Investment Income Tax (NIIT) imposes a 3.8% tax on certain net investment income of individuals, estates, and trusts that are above statuary threshold amounts. This statement may leave you wondering, “Am I subject to the Net Investment Income Tax?
As with any tax law, there are pages of rules, exceptions, and loopholes, so consult your tax accountant for more information.
However, in order to be subject to this tax, you must: