Reply To: Net Investment Income Tax

Home Fairmark Forum Taxation of Investments Net Investment Income Tax Reply To: Net Investment Income Tax


In my e-mail I received the following message relating to this thread; however, it does not show up in the thread–at least not for me.

Justin wrote:

* * * * * * * * * * * * * *

Hi wanttoknow,

You replied to MDM earlier saying

> The former–“one has to have chosen to itemize deductions”

but I could not find anywhere in the regulations why that is. Do you have a pointer or something you can quote indicating that in fact one cannot rely on itemizable deductions?

Post Link: “

* * * * * * * * * * * * * *

I relied on Kaye Thomas’s message #1928 close to the beginning of this thread.

He said:

“The amount you can use in calculating NIIT is limited to ‘deductions allowed by subtitle A’ (see (a)(2) of the reg).” He then goes on to describe what Subtitle A says. The reg. he refers to is 1.1411-4 Definition of net investment income.

In his message #1933 he explains that “In the tax regulations, a reference to subtitle A means the part of the Internal Revenue Code that tells how the income tax works.”

I believe the Code, which is approved by Congress, is different from the regulations which are devised by the I.R.S.