I don't understand the NIIT very well. But I think your income alone (at 370 k) is going to put you and your wife way over the 250 k threshold from the start. I don't think regular income (from a W-2) is ever subject to the NIIT. But with capital gains from selling stocks or bonds, it will be in play. But "in play" is intentionally vague because I would prefer that someone who knows what they are talking about better than I do would answer your questions. I'm more just flagging this so that you know to ask someone who actually knows.noted on 'throwing away money'. when you put it as 70k a year of interest it sounds a lot worse given my total current expense is only 70k.
i think i finally put a finger on what's bothering me - its the life style inflation (higher annual expense) that i'll enter into once i go the buy route.
re: commute it's 3x a week, unfortunately due to the distance there's not a lot of reduction even in off hours (maybe cut down from 1 hr to 50ish mins one way).
re: NIIT, wow man first I've heard of it. is the 250k limit for a combo of income plus capital gains? I get where the 15% and 3.8% are coming from, but where is the 23.8% from?
23.8% --> this would only come into play if you sell so much in taxable that some of what you sell would be subject to the 20% capital gains bracket instead of the 15% capital gains bracket (and the 3.8% addition comes from the NIIT). But the 20% bracket is pretty high (an article I just googled says it starts at $583,751 for married filing jointly for 2024). Here too, though, I would prefer that someone who understands these things better than I do answers your questions because I am not great with these things.
Statistics: Posted by chiliagon — Wed Aug 14, 2024 5:26 am
