INVESTMENT INCOME | subject to tax

Are your investments subject to the 3.8% Net Investment Tax? It targets things like vacation homes and investment properties owned by high income individuals who exceed the threshold.

This law requires a tax of 3.8% on the lesser of either your net investment income or the amount by which your modified adjusted gross income (MAGI) exceeds a certain threshold.

• Filing Single/Head of Household — MAGI Threshold:  $200,000
• Filing Married, Filing Jointly — MAGI Threshold:  $250,000
• Filing Married, Filing Separately — MAGI Threshold $125,000

Here’s a few examples of what is generally included:
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• Interest
• Dividends
• Capital gains
• Rental and Royalty Income
• Non-Qualified Annuities

​Please make sure to consult your personal CPA with question on the Net Investment Tax and how it pertains to you. But always BE TAX ADVANTAGEOUS!

Source:  American’s Tax Solutions / www.irs.gov

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