An S corporation shareholder's allocable share of business income that is determined to be from a passive activity is considered net investment income for purposes of the Net Investment Income tax.

Question

Quizplus · Accepted Answer

According to IRS regulations, an S corporation shareholder's share of income from a passive activity is considered net investment income subject to the Net Investment Income Tax. Therefore, the statement is true.

An S Corporation Shareholder's Allocable Share of Business Income That