8 Jul 2013 Updates on Net Investment Income Tax (NIIT)-a buy-product of Obamacare. The NIIT is a tax of 3.8% that is applied to income which is generated by a Income) income is equal to or greater than the following thresholds  Generally, the NIIT is a 3.8 percent levy on the lesser of two figures: The taxpayer's net investment income, or; The amount of adjusted gross income Indeed, the income threshold that has to be reached in order for the tax to kick in cuts the 

24 Sep 2013 B. Thresholds are not indexed for inflation. C. 3.8% tax applies to the lower of (1) a taxpayer's net investment income or. (2) the amount that the  5 Dec 2013 Trusts, Estates, and the Net Investment Income Tax a tax increase that went into effect for this tax year: a 3.8% tax on net investment income. of his/her modified adjusted gross income (AGI) at the following thresholds:  4 Feb 2014 subject to the new 3.8 percent net investment income tax (NIIT) may is the lesser of (1) the excess MAGI over the taxpayer's threshold and  12 Apr 2016 taxpayers whose modified adjusted gross income exceeds certain thresholds are subject to a 3.8 percent Net Investment Income Tax (NIIT). 6 Dec 2012 An In-Depth Look: The 3.8% Net Investment Income Tax or (2) the excess of modified adjusted gross income over a threshold amount. 4 Jan 2013 Medicare Tax: The Net Investment Income Tax is 3.8% and applies to “unearned” investment income for those with modified adjusted gross 

The amount actually subject to the tax is the lesser of your net investment income or the amount by which your MAGI exceeds the threshold. ($250,000, $200,000,  

Could the NIIT apply to the sale of your home? Mar 05, 2014 · The tax applies to your net investment income or the excess of your MAGI over the threshold, whichever is less. So, for example, if a married couple has MAGI of $300,000, including $75,000 of net investment income, the tax is 3.8% of $50,000, the amount by which the couple’s MAGI exceeds the $250,000 threshold. Application to home sales Avoiding Net Investment Income Tax - Evergreen Small Business May 08, 2017 · Avoiding Net Investment Income Tax Tip #2: Substitute Self-employment Taxes. Here’s another tip: You may want to look at making income subject to the 3.8% self-employment tax rather than the 3.8% net investment income tax. Note that both of these taxes work the same way in a sense. Both use the same 3.8% percentage.

The net investment income tax is a 3.8% “extra” tax that applies to certain investment income in addition to any other income tax due. Whether you’re subject to the tax depends on two general factors: the amount of your modified adjusted gross income for the year, and …

In December 2012, the IRS issued proposed regulations (REG-130507-11) for the net investment income tax under Sec. 1411 that went into effect on Jan. 1, 2013. At the same time, the IRS released a list of frequently asked questions concerning the net investment income tax. Net Investment Income Tax: How Does It Affect You? The net investment income tax imposed by Sec. 1411 is a 3.8% tax on the lesser of (1) net investment income or (2) the excess of modified adjusted gross income (MAGI) over a … Net Investment Income Tax (NIIT) - thismatter.com A summary of the new 3.8% Net Investment Income Tax (NIIT) that applies to net investment income of individuals, estates, and trusts, starting in January 1, 2013; who is subject to the NIIT, what investment income does the NIIT apply to; and how to calculate the NIIT. How to avoid new 3.8% tax on investment income - MarketWatch Oct 15, 2013 · The new 3.8% Medicare tax on net investment income took effect on January 1. It only affects higher-income individuals, but that can include anyone who has a …

8 Jul 2013 Updates on Net Investment Income Tax (NIIT)-a buy-product of Obamacare. The NIIT is a tax of 3.8% that is applied to income which is generated by a Income) income is equal to or greater than the following thresholds 

25 Mar 2016 The Net Investment Income Tax continues to impact taxpayers who fall within its income parameters. Does 3.8% Change Anything? surface in late 2009 as Congress was considering increases to overall income tax rates. 24 Sep 2013 B. Thresholds are not indexed for inflation. C. 3.8% tax applies to the lower of (1) a taxpayer's net investment income or. (2) the amount that the 

Calculating 3.8% Net Investment Income Tax (NIIT)

Jul 23, 2014 · Executive Summary. As the 2013 tax preparation season wound to a close in April of this year, many investors discovered for the first time a costly new line item on their tax return: “Other Taxes” on Line 60 of their Form 1040, where they reported the new 3.8% “Medicare surtax” on net investment income that just took effect in the past year. The 3.8% Net Investment Income Tax - More Than Meets the Eye The 3.8% Net Investment Income Tax - More Than Meets the Eye There's a lot for taxpayers to know when it comes to the 3.8% net investment income tax (3.8% NIIT). This new tax is imposed on income from several sources and its impact is far reaching. Analyzing its impact can get complicated fast. NII Tax Thresholds | vebcpa

12 Apr 2016 taxpayers whose modified adjusted gross income exceeds certain thresholds are subject to a 3.8 percent Net Investment Income Tax (NIIT). 6 Dec 2012 An In-Depth Look: The 3.8% Net Investment Income Tax or (2) the excess of modified adjusted gross income over a threshold amount. 4 Jan 2013 Medicare Tax: The Net Investment Income Tax is 3.8% and applies to “unearned” investment income for those with modified adjusted gross  28 Apr 2014 If the previously mentioned threshold amounts are met, then income gained from passive activities will be subject to the NIIT of 3.8 percent. This  26 Nov 2013 The threshold amounts for individuals are $250,000 for surviving If the child files his or her own tax return reporting the net investment income