@april4mar in fact ALL your investment earnings - interest, dividends, capital gains - will be subject to the 3.8% if your income exceeds $200,000 ($250,000 joint filing)
1) 3.8% times interest dividends, capital gains on the portion of income that takes you over the threshhold.
2) Let's say you filed 'Single" and your total income was $230,000. $50,000 of which was interest, dividends and capital gains. So the NIIT would be 3.8% on the part over $200,000 or $30,000*3.8%.
my point is that it's not only the capital gains that is subject to the 3.8%, depending on how large that capital gains is, it can drag along the interest and dividends to also be subject to the 3.8% NIIT
I assume this will be a 2023 transaction? You referenced the increase in 2025 of your Medicare premiums (IRMAA). IRMAA is set based on your MAGI two years back, so 2023 income affects 2025 IRMAA.
