Which of the following items are subject to the Net Investment Income tax when a partner is not a material participant in the partnership?
A) Partner's distributive share of dividends.
B) Partner's distributive share of interest.
C) Partner's distributive share of ordinary business income.
D) All of the choices are correct.

Question

Quizplus · Accepted Answer

The Net Investment Income tax applies to a partner's share of investment income such as dividends and interest. It also applies to a partner's distributive share of ordinary business income if the partner is not a material participant in the partnership.

Which of the Following Items Are Subject to the Net