How To Reduce Net Investment Income Tax

You may have heard of the Net Investment Income Tax, but do you know how it actually works or how to minimize its impact? In this video, Liz breaks down the often-overlooked 3.8% tax, explains who it impacts, and provides three practical strategies to help you tax plan smarter.

Liz walks through the income thresholds that trigger this additional tax and explains how it’s added on top of existing capital gains or ordinary income tax rates. But it’s not all bad news. Could repositioning your investments into different types of accounts reduce your tax burden? What if timing your income more carefully could help you stay under the threshold? Liz unpacks the details, so you can make smarter tax moves starting today.

Here’s some of what we discuss in today’s show:

0:00 – Intro
0:04 – What is the Net Investment Income Tax?
2:19 – Strategy 1: Reduce net investment income
3:27 – Strategy 2: Lower your AGI
4:35 – Strategy 3: Look at your investments

#taxplanning #neiInvestmentincometax #financialfreedom #smartinvesting #wealthbuilding