Net Investment Income

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Definition - What does Net Investment Income mean?

Net investment income is the performance of securities, such as stocks and bonds, after subtracting the amount paid for operational and administrative expenses.

Insuranceopedia explains Net Investment Income

Net investment income applies to anyone who owns securities in their investment portfolios, whether the are individuals or companies.

The IRS taxes this income differently than it does salaries and other sources of income. Anyone receiving investment income must file Form 8960 with their taxes.


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