Question

net investment income taxes

Forum|Forum|1 year ago
July 8, 2024
2 replies
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I sold a rental property for which I am paying capital gains taxes on the sale. However, I am also being assessed additional net investment income taxes on part of my profits from the sale. Is this correct? Isn't this double taxation on the same transaction?

B

Bsch4477

Employee

The net investment income tax (NIIT) is a 3.8% tax that kicks in if you have investment income and your income exceeds $200,000 for single filers, $250,000 for those married filing jointly or $125,000 for those married filing separately

rjs

Employee

Net Investment Income Tax (NIIT) is additional income tax on investment income when your AGI is over a certain threshold that depends on your filing status. In effect it's a higher tax rate on investment income of high-income taxpayers. It is not double taxation.