### Question
How is the term net investment income defined?


### Answer
The term **net investment income** is defined in *26 U.S.C. § 163* as the following:

> the excess of—



(i) investment income, over



(ii) investment expenses

#### Citation:
  - *26 U.S.C. § 163*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART VI-ITEMIZED DEDUCTIONS FOR INDIVIDUALS AND CORPORATIONS**

