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 A and B

Question

Quizplus · Accepted Answer

The Net Investment Income tax applies to passive income such as dividends and interest. However, if the partner is a material participant, the ordinary business income is not subject to this tax.

Which of the Following Items Are Subject to the Net