How the Net Investment Income Tax Hits Real Estate Investors

Episode 39 of The Tax Policy Podcast digs into the Net Investment Income Tax (NIIT) — the 3.8 percent surtax that quietly raises billions from real estate investors, high-income retirees, and passive business owners. Lucas and Luna walk through a concrete example: a retired couple selling a rental portfolio near Austin, Texas, and discover how the NIIT adds $47,000 to their tax bill. They explore the legislative backstory (the 2010 health-care law that funded it), the statutory thresholds ($250,000 married filing jointly), and the surprising carve-outs for active real estate professionals. The episode also touches on the current political landscape as of June 2026 — with bipartisan chatter about reforming or expanding the NIIT to fund infrastructure. No markdown, just the numbers, the code section, and why your CPA should care. #NetInvestmentIncomeTax #NIIT #RealEstateTax #PassiveIncome #TaxPolicy #Economics #FiscalPolicy #ObamacareTax #RealEstateInvestor #CapitalGains #TaxReform #InfrastructureFunding #HighIncomeTax #PassiveActivity #RealEstateProfessional #TaxCode #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo