Alain Mire files a single tax return and has adjusted gross income of $304,000. His net investment income is $53,000. What is the additional tax that Alain will pay on his net investment income for the year?
A) Zero.
B) $2,014.
C) $3,952.
D) $1,938.
E) None of the choices are correct.

Question

Quizplus · Accepted Answer

Alain's net investment income tax is the lesser of 1) his net investment income ($53,000) or 2) his modified adjusted gross income less the threshold of $200,000 ($304,000 − $200,000 = $104,000) multiplied by 3.8 percent ($53,000 × 3.8% = $2,014).

Alain Mire Files a Single Tax Return and Has Adjusted