The National Directory of Certified Public Accountants

Ask A CPA - Net Investment Income Tax

What Kinds Of Gains Are Included In Net Investment Income?

To the extent that gains are not otherwise offset by capital losses, the following gains are common examples of items taken into account in computing Net Investment Income: 1.Gains from the sale of stocks, bonds, and mutual funds. 2.Capital gain distributions from mutual funds. 3.Gain from the sale of investment real estate (including gain from the sale of a second home that is not a primary residence). Gains from the sale of interests in partnerships and S corporations (to the extent you were a passive owner).

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