Net Investment Income


Also found in: Acronyms.

Net Investment Income

The income one derives from capital gains, dividends and other activities related to the purchase and sale of securities. It is calculated by subtracting losses on securities transactions from gains. Investment income differs from wages and salary primarily in that one does not need to work for investment income. One can manage one's investments oneself or one can hire a money manager to do it. Both individuals and companies can have net investment income; indeed a publicly-traded company must list its net investment income on its balance sheet. Investment income is often taxed differently than other income. See also: Capital gains tax.
References in periodicals archive ?
beneficiaries receiving distributions of accumulated net investment income of a foreign trust, but until guidance is issued, Sec.
"For the first quarter, our diverse portfolio continued to produce adjusted net investment income growth and covered our regular quarterly dividend.
This exclusion applies even if such a trust may be subject to a tax on unrelated business taxable income (UBTI) and even if that UBTI contains net investment income. This category of trusts includes trusts that are exempt from tax under Sec.
Net investment income surpassed $188.3 million, compared to nearly $154 million in Q2 2018.
Total operating expenses for the three months ended September 30, 2018 were approximately USD 25.0 million, or USD 0.42 per share, including interest and other debt expenses of USD 10.1 million, or USD 0.17 per share and incentive compensation from net investment income of USD 6.1 million, or USD 0.10 per share.
Although it has been established that the sale of a shareholder's personal goodwill may generate capital gain to the shareholder, a related question is whether that capital gain is net investment income for purposes of the net investment income tax.
The first quarter of 2015 saw net investment gains of $16.4 billion after capital gains jumped from $2.9 billion to $4.7 billion, increasing net investment income by $500 million to $11.7 billion.
Moreover, by their nature, most trusts and estates are likely to have only net investment income. This means that trusts and estates with relatively small amounts of net investment income may nonetheless be in the highest income tax bracket and be subject to the 3.8 percent NIIT.
* This net investment income tax may be imposed if you report modified adjusted gross income (MAGI) over $200,000, or over $250,000 on a joint tax return.
The new Net Investment Income Tax (NIT) enacted pursuant to the Patient Protection and Affordable Care Act contains hidden traps for small business owners operating in an entity treated as a "pass-through entity" for federal income tax purposes--an S corporation, LLC, limited partnership or other entity taxed as a partnership.
30, 2013, FMN had net investment income of $5.59 million or $0.91 per common share.