This Year, Reggie's Distributive Share from Almonte Partnership Includes $18,000

question 47

Essay

This year, Reggie's distributive share from Almonte Partnership includes $18,000 of interest income, $14,000 of dividend income, and $70,000 of ordinary business income.
A. Assume that Reggie materially participates in the partnership. How much of his distributive share from Almonte Partnership is potentially subject to the net investment income tax?
B. Assume that Reggie does not materially participate in the partnership. How much of his distributive share from Almonte Partnership is potentially subject to the net investment income tax?

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Definitions:

UCC

A complete codification of laws, the Uniform Commercial Code oversees every commercial activity in the United States.

UCC

Refers to the Uniform Commercial Code, a complete collection of regulations that oversee every commercial transaction in the United States.

Manufacturer

An entity or individual that makes goods through a process involving raw materials, machinery, and labor.

Shipment

The process of transporting goods from one location to another.