The Net Investment Income Tax applies to real estate in a variety of ways. One of those ways is if your income from real estate is passive, then it’s going to be subject to the NII if you’re in a bracket that is subject to the tax. In addition, to the extent that your income is passive from capital gains, those capital gains are going to be subject to this tax. To the extent that you are involved in real estate, this tax will have an impact and should be considered in your tax planning.
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