Personal Investments • Roth conversion or not?

Regaridng NIIT: Do I understand correctly that if I had $100k in investment income and $250k in AGI, then I'd owe NIIT on $100k? And, if I have $500k in investment income and AGI of $250k, then I'd own NIIT on $250k?

Here's a super basic question: Is investment income a component of AGI?

Yes, investment income is a component of MAGI.
If you had 100k in investment income and MAGI was 250k, you would not owe any NIIT.
If you had 500k in investment income, your MAGI, which includes investment income, could not be 250k. Even if you had no other source of income, your MAGI would be 500k, and you would owe NIIT on 250k of that amount.

Statistics: Posted by josephny — Tue Jul 16, 2024 11:50 am — Replies 37 — Views 1146