(a) In generalExcept as provided in subsection (e)—
(1) Application to individualsIn the case of an individual, there is hereby imposed (in addition to any other tax imposed by this subtitle) for each taxable year a tax equal to 3.8 percent of the lesser of—
(2) Application to estates and trustsIn the case of an estate or trust, there is hereby imposed (in addition to any other tax imposed by this subtitle) for each taxable year a tax of 3.8 percent of the lesser of—
(b) Threshold amountFor purposes of this chapter, the term “threshold amount” means—
(c) Net investment incomeFor purposes of this chapter—
(1) In generalThe term “net investment income” means the excess (if any) of—
(A) the sum of—
the deductions allowed by this subtitle which are properly allocable to such gross income or net gain.
(2) Trades and businesses to which tax appliesA trade or business is described in this paragraph if such trade or business is—
a passive activity (within the meaning of section 469) with respect to the taxpayer, or
(3) Income on investment of working capital subject to tax
A rule similar to the rule of section 469(e)(1)(B) shall apply for purposes of this subsection.
(4) Exception for certain active interests in partnerships and S corporationsIn the case of a disposition of an interest in a partnership or S corporation—
gain from such disposition shall be taken into account under clause (iii) of paragraph (1)(A) only to the extent of the net gain which would be so taken into account by the transferor if all property of the partnership or S corporation were sold for fair market value immediately before the disposition of such interest, and
a rule similar to the rule of subparagraph (A) shall apply to a loss from such disposition.
(5) Exception for distributions from qualified plans
(d) Modified adjusted gross incomeFor purposes of this chapter, the term “modified adjusted gross income” means adjusted gross income increased by the excess of—
the amount excluded from gross income under section 911(a)(1), over
the amount of any deductions (taken into account in computing adjusted gross income) or exclusions disallowed under section 911(d)(6) with respect to the amounts described in paragraph (1).
(e) Nonapplication of sectionThis section shall not apply to—