Which of the following items are subject to the Net Investment Income tax when an individual partner is 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) Both Partner's distributive share of dividends and Partner's distributive share of interest.

Question

Quizplus · Accepted Answer

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

Which of the Following Items Are Subject to the Net