Solved
Net Investment Income Tax / K-1 Dividend Income
I have an S Corp K-1 (NOT passive) with dividend income on it. The corporation is a service corporation that bought P&G stock which is where the dividend came from. The corp is not in the banking business. I have the boxed check to indicate the K-1 is not subject to net investment tax. Why is the dividend showing up on Form 8960 line 2? The dividend was generated from an active business. Do I need to override this or is it correct and the dividend is still considered net investment income because it is a dividend? Thanks!
