investment income
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Net Investment Income Tax
Net Investment Income Tax The Net Investment Income Tax (NIIT) is a 3.8% surtax that applies to investment income for certain taxpayers in the United States. It’s essentially an additional tax on top of your regular income tax. Here’s a breakdown of the key points: Who it applies to: Individuals, estates, and trusts. However, there are income thresholds you need to exceed before the NIIT applies. What it taxes: Net investment income, which includes things like: Capital gains (both short-term and long-term)…
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Investment Expenses
Investment Expenses Investment expenses are the costs associated with buying, holding, and selling investments. They can eat into your returns, so it’s important to be aware of them and factor them into your investment decisions. There are two main types of investment expenses: Transaction fees: These are the fees you pay to buy and sell investments, such as commissions, spreads, and ticket charges. Management fees: These are the fees you pay to investment professionals to manage your portfolio. These can include annual…
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