Don’t lose sight of the net investment income tax as a strategy to minimize your tax exposure

How about something NOT related to the recently passed Tax Cuts and Jobs Act (TCJA)? The TCJA did not eliminate the 3.8% Net Investment Income Tax that took effect back in 2013. This tax is imposed on individuals’ interest, dividends, capital gains, and income from other passive investments.  However, if you loaned money to a business you actively participate in, you can exclude some or all of the interest income you receive for purposes of calculating the 3.8% net investment income tax.

Learn more about the Net Investment Income Tax or contact a Dugan & Lopatka professional at or (630) 665-4440.

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