How is Net Investment Income (NII) calculated?
I'm failing to find the exact formula for how Net Investment Income is calculated. (Note that I'm not interested in how the net investment income tax is calculated. That seems to be very well covered.)
For example, an individual in a single year has the following gains and losses:
,000 in long-term capital gains
,000 in short-term capital losses
In this scenario, is the Net Investment Income zero because the gains and losses perfectly offset? Is Net Investment Income as simple as gains minus losses (and fees)? Do you mind citing a source for your answer?
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