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tiffo
New Member

net investment income taxes

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? 

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2 Replies

net investment income taxes

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
Level 15
Level 15

net investment income taxes

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.

 

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