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Scenario $5$: The Intricacies of the Net Investment Income Tax $($NIIT$)$

Taxpayer has the following income:

Wages: $$30,000$

Short$-$term Capital Gains: $$60,000$

Qualified Dividends: $$40,000$

Nonqualified Dividends: $$30,000$

Limited Partnership Income $($passive$)$: $$50,000$

Itemized Deductions: $$28,000$

Allowable deduction for self$-$employment tax: None

Calculate:

Modified Adjusted Gross Income $($MAGI$)$ for NIIT

Net Investment Income

Potential NIIT liability

Analyze what types of income are and are not subject to NIIT