KNDavis
Employee Tax Expert

Business & farm

Hi Masa131,

 

The 3.8% Net Investment Income Tax applies only to investment income - generally interest, dividends and capital gains.  

 

The IRS calculates interest based on days, not months, but in theory, your calculation is correct.

 

I'm glad this information was useful.  Thanks again!

 

Kimberly, CPA

 

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