PTIN Seal

Net Investment Income Tax

  1. PTINdirectory
  2. Tax Knowledge Database
  3. Net Investment Income Tax
  4. Does this tax apply to gain on the sale of a personal residence?

Does this tax apply to gain on the sale of a personal residence?

The Net Investment Income Tax will not apply to any amount of gain that is excluded from gross income for regular income tax purposes. The pre-existing statutory exclusion in IRC section 121 exempts the first $250,000 ($500,000 in the case of a married couple) of gain recognized on the sale of a principal residence from gross income for regular income tax purposes and, thus, from the NIIT.

Need Professional Help?

If you need help with "Net Investment Income Tax" or have other tax questions, we can help you find a local licensed tax preparer for a free, no-obligation consultation.