WebNov 26, 2013 · In summary, portfolio and passive income are two categories of income subject to the NIIT. It would then seem intuitive that to avoid this additional surtax of 3.8% on net investment income, you would simply need to have income derived from a business, since income derived from a business is neither passive nor portfolio. WebApr 29, 2014 · Generally, income subject to Self-Employment (SE) tax is not subject to the NIIT. Rental income may be subject to NIIT unless you meet certain exceptions. If the …
What Is The Net Investment Income Tax (NIIT)? – Forbes Advisor
WebFeb 7, 2024 · If a farmland sale is subject to the 3.8% net investment income tax (NIIT), a cash sale may result in a significant portion of the gain being exposed to the tax. However, an installment sale may allow the seller to report an annual gain amount that keeps AGI below the threshold of the 3.8% tax. WebOne change is the new net investment income (NII) tax levied on certain unearned income of individuals with adjusted gross income of more than $200,000 ($250,000 for joint filers). Introduced as part of the Patient Protection and Affordable Care Act (PPACA), this 3.8 percent tax applies to unearned income such as interest, dividends, iphone vpn wifi problem
Farm Income Tax Implications H&R Block
WebDec 15, 2024 · 9. Using the previous year's Form 8960, recalculate the NIIT for the year of the deduction by replacing the amount reported on line 12 with the amount reported on line 8 of this worksheet (don’t use the net investment income reported on that year's Form 8960, line 12). Enter your recalculated NIIT here. WebMar 1, 2013 · If income tax rules and Social Security tax are ignored, this $10,000 generally would be subject to the effective HI tax rate of 3.23% (net of the 50% deduction for the 2.9% HI tax; the 0.9% additional Medicare contribution tax is not deductible), or a tax of $323, calculated as follows: WebJan 9, 2014 · Marc Lovell - IFES - Effective January 1, 2013, there are two new Medicare taxes that will affect higher-income farmers. The Net Investment Income Tax (NIIT) is a new 3.8% tax on certain types of passive income. Wages, self-employment income and other sources of income subject to Medicare tax may be subject to the new Additional … iphone vr case