If one invests capital gain in a Qualified Opportunity Fund, thus deferring the Form 1040 tax on the prior capital gain, and that prior capital gain is also subject to the Net Investment Income Tax, can the Net Investment Income Tax also be deferred?
I don’t know the answer to your question but wonder if a different approach might help. Is your NIIT determined by your net investment income or the amount of AGI exceeding the threshold? I would guess
that for most folks, it would be determined by the latter unless you have tons of ordinary income. If it is determine by the AGI excess, then perhaps you don’t really need to know your NII precisely to calculate NIIT?
Wonder if you can get a hint by just mechanically following F8960 and instructions for cap gains…….on one line it says to enter line 13 of
the 1040. If you are going leave something off line 13, sounds like it
wouldn’t end up on the 8960? Other adjustments are to exclude gains.
Might have missed it but I don’t see a line to add additional gains.