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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