NET INVESTMENT INCOME

Includes:

• Interest
• Dividends
• Annuity Distributions
• Rents
• Royalties
• Income derived from passive activity
• Net capital gain derived from the disposition of property

Does NOT Include:

• Salary, wages or bonuses
• Distributions from IRAs or qualified plans
• Any income taken into account for self-employment tax purposes
• Gain on the sale of an active interest in a partnership or S-Corporation
• Items which are otherwise excluded or exempt from income under the income tax law, such as interest from tax-exempt bonds, capital gain excluded under IRC 121, and veterans benefits