NIIT - Do We Pay These?

[Aaron Moayed]

Do we pay NIIT taxes at the time of sale if we're an investor who used a property management company (or didn't use one)? Anyone know the tax code for this?

[Michael Plaks]

Originally posted by @Aaron Moayed:

Do we pay NIIT taxes at the time of sale if we're an investor who used a property management company (or didn't use one)? Anyone know the tax code for this?

Your question is not very clear.

1. Are you asking whether NIIT is imposed on the capital gains? If so, the answer is yes, assuming your income reached the threshold. NIIT is applied to interest, dividends, capital gains and income from passive activities.

2. It's not literally at the time of sale. It is calculated as part of your annual tax liability.

3. The total tax liability (income tax, NIIT, self-employment tax, 10% early retirement distribution penalty etc.) is subject to the estimated payments rules if you end up owing.