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 This year, Justin B.’s share of S corporation income includes 
$6,200 of interest income,
$8,300 of dividend income, and
$51,000 of net income from the corporation’s professional service business activity.

 Assume that Justin B. materially participates in the S corporation. How much of his S corporation income is potentially subject to the net investment income tax?

$6,200 of interest income,
$8,300 of dividend income,
14,500 S corporation income is potentially subject to the net investment income tax

b. Assume that Justin B. does not materially participate in the S corporation. How much of his S corporation income is potentially subject to the net investment income tax?

$51,000 of net income from the corporation’s professional service business activity.

Currently, I am an MBA student at EIU. This blog will follow my studies in Corporate taxation

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