Andy, another super clear presentation. I though I knew all about the subject but this presentation made me aware of of the important "lesser" rule. Thank You!!!
The conversion wouldn't be subject to having the 3.8% NIIT applied to it. But the taxable portion of the conversion would be included in your gross income and may then put you over the NIIT MAGI threshold (if you weren't already over it) such that the sources of income that ARE subject to the NIIT tax would then be slapped with the extra 3.8%. That would be things such as dividends, interest, capital gains, etc.
No, I don't believe so. Taxable legal settlements typically go on your 1040 tax return as "other income." And "other income" is not one of the items included in NIIT (i.e. Form 8960 Part 1). The purpose of NIIT is to apply the 3.8% to most forms of INVESTMENT income. Fundamentally, legal settlements are not investments, which is why they shouldn't be subject to NIIT
Any idea if you are classified/filing with Trader Tax Status will you still need to file NIIT on short term capital gains since this is active trading income. Is it considered active income?
Despite all the economic crisis,this is still good time to start up an investment. I invested in both stocks and crypto but currently I believe crypto is doing much better
Nice presentation. Clear, concise, and professional. Love the video, hate the tax. Thank you for taking the time to put this together.
Andy, another super clear presentation. I though I knew all about the subject but this presentation made me aware of of the important "lesser" rule. Thank You!!!
Thanks Andy. Very clear and a nice example that other verbose sites just confuse more.
Thanks!
Thank you for this video. You explained it very well.
Great video!
thank you!
Does NIIT not get applied to QUALIFIED dividends? If not, where/which form shows the calculation for taxation on Qualified dividends?
Would a Roth conversion count from 401k????.
The conversion wouldn't be subject to having the 3.8% NIIT applied to it. But the taxable portion of the conversion would be included in your gross income and may then put you over the NIIT MAGI threshold (if you weren't already over it) such that the sources of income that ARE subject to the NIIT tax would then be slapped with the extra 3.8%. That would be things such as dividends, interest, capital gains, etc.
Is this in addition to capital gains tax on the investment income?
Unfortunately yes
Does NIT apply to lawsuit settlement money?
No, I don't believe so. Taxable legal settlements typically go on your 1040 tax return as "other income." And "other income" is not one of the items included in NIIT (i.e. Form 8960 Part 1).
The purpose of NIIT is to apply the 3.8% to most forms of INVESTMENT income. Fundamentally, legal settlements are not investments, which is why they shouldn't be subject to NIIT
Any idea if you are classified/filing with Trader Tax Status will you still need to file NIIT on short term capital gains since this is active trading income. Is it considered active income?
Hmm, great question. And one I don't know the answer to, as I'm not familiar with the scenario of having trading income be considered "active"
Does anyone know if I have net capital loss then can I reduce the Net Investment Income by that amount?
Yes, Net Investment Income is the netted amount of losses and gains
@@RetirementPlanningEducation Thanks. Loss Harvesting just got more useful.
Despite all the economic crisis,this is still good time to start up an investment. I invested in both stocks and crypto but currently I believe crypto is doing much better