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Level 3
April 4, 2023
Question

Net Investment Income Tax Not Accounted in Effective Tax Rate, Why?

  • April 4, 2023
  • 1 reply
  • 8 views

Can somebody please explain the logic of why the Net Investment Income Tax is not included in the effective tax rate calculation? You should be able to take your tax and divide it by your AGI. You have to remove Net Investment Income to get the correct answer which seems wrong.

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1 reply

BobKamman
Level 15
April 4, 2023

You mean other people actually use that feature to bedazzle their clients with BS?