Net Investment Income

Updated: 22 October 2024

What Does Net Investment Income Mean?

Net investment income refers to the returns generated from securities, such as stocks and bonds, after deducting operational and administrative expenses.

Insuranceopedia Explains Net Investment Income

Net investment income applies to anyone holding securities in their investment portfolios, whether individuals or companies.

The IRS taxes this income differently from salaries and other sources of income. Anyone receiving investment income is required to file Form 8960 when submitting their taxes.

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