Net Investment Income Tax (NIIT): The Basics
Before taxes, investment assets such as bonds, equities, mutual funds, loans, and other investments generate income known as net investment income tax (NIIT). Whether net investment income consists of capital gains, dividends, or interest will affect the individual tax rate. Net Investment Income Tax (NIIT) Explained An IRS tax on certain people, estates, and trusts' net investment income is known as the net investment income tax or NIIT. More specifically, this applies if yo