This is a tax that is going to blindside a lot of people, and it’s shocking how many new clients I work with have no idea what it is. Net Investment Income Tax was intended to tax the investment income of high-income individuals. However, more and more taxpayers are now subject to this tax since the brackets have not been adjusted for inflation. Today, we are breaking down what it is, how it works, and how to plan around it.
Key Topics:
- The History and Purpose of Net Income Tax (01:00)
- What Constitutes Net Investment Income (01:26)
- What NIIT Does Not Include (02:07)
- Income Thresholds for NIIT (02:45)
- Examples of NIIT in Action (03:52)
- Planning Around NIIT (05:47)
This Episode is intended to be financial education only and is not intended to be specific tax, legal, or investment advice. Please consult a professional for specific advice. Subscribe to our weekly planning insights newsletter: https://mdrnwealth.com/blog/
Video Tutorial on Tax Loss Harvesting: https://www.youtube.com/watch?v=Goc-ZonDNLY&t=458s
If you need specific advice you can contact us at Advice@mdrnwealth.com or at: https://www.mdrnwealth.com
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