3.8 Percent Additional Tax
on certain Net Investment Income

Net Investment tax based on whichever is less
       a) Amount of entire net investment income
       b) The amount that MAGI exceeds the threshold

Note: MAGI means Modified Adjusted Gross Income

Status	MAGI Thresold
Joint Return	$250,000
Single	$200.000
Head of Household	200,000

What is Net Investment Income

income from invested assets such as bonds, stocks, mutual funds
Capital gains
Dividend income
Interest income
Rental income
Royalty income
Certain annuities
Passive business profits

An interesting Question:
If interest bearing bonds are help in a pass-through entity
     Does the 3.8% apply to the entire amount or
     or to the 20% reducted amount


A fun calculation:
$100,000       33% bracket   equals   $33,000

80,000       33% bracket      equals $26,400

100,000    times   3.8 %     equals    $3,800

80,000    times   3.8 %     equals    $3,040

$26,400  plus $3,800    equals   30,200