Definitions for "Net Investment Income"
Total pre-sale operating profits or losses from an investment property. This is the net result after subtracting all operating expenses and management fees. However, the sale price or appreciation in equity is not taken into consideration, as they are not yet considered realized income or gains.
This item represents Investment Income earned during the year less investment expenses and depreciation on real estate. Investment expenses are the expenses related to generating investment income and capital gains but exclude income taxes.
The total of all investment income (other than tax-exempt income) reduced by the sum of the following: adjustments to income related to the investment income, plus the larger of: $650 plus itemized deductions directly connected with producing the investment income, or $1,300.