Estates and trusts with undistributed net investment income and AG1 above the dollar amount at which the highest tax bracket for an estate or trust begins *for that tax year are also subject to the net investment income tax.
Three defined categories of income are subject to the net investment income tax (Sec.
Gains and losses from dispositions of trade or business property used in passive activities are included in calculating the net investment income tax.
But if the $50,000 is invested in growth stocks that pay only $500 in dividends, current deductions are limited to the net investment income
of $500; the remaining interest expense of $4,500 must be carried forward indefinitely.
If Doris had $2,000 investment income, imputed interest would be computed, but would be limited to her $2,000 net investment income
4940(c)(1), which states that "[e]xcept to the extent inconsistent with the provisions of this section, net investment income
shall be determined under the principles of Subtitle A.
This results in additions to or draws from the fund's undistributed net investment income
For the quarter ended November 30, 2014, Saratoga Investment reported net investment income of $2.
This compared to the quarter ended November 30, 2013 with net investment income of $2.
For the fiscal year ended September 30, 2006, the Fund's earnings from net investment income
were $7,150,395, equal to $0.
Due to an effort to maintain a stable distribution amount, the distribution declared, as well as future distributions, may consist of net investment income, realized capital gains and return of capital.
In compliance with Section 19 of the Investment Company Act of 1940, as amended, a notice would accompany any distribution that does not consist solely of net investment income.