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

question 122

True/False

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.

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Definitions:

Compensation

Payment or rewards given to employees or workers for their services, which can include wages, salaries, benefits, and bonuses.

Money Managers

Professionals who make investment decisions and manage the portfolio of securities for their clients.

Alpha

A measure of the active return on an investment, indicating how much a portfolio has outperformed or underperformed its benchmark index.

CAPM

The Capital Asset Pricing Model, a theory that describes the relationship between the risk of a security and its expected return.