gfizer Posted April 12, 2017 Report Share Posted April 12, 2017 Farmer actively engaged in the business of farming sells his farm, livestock and most of his equipment with gain of approximately $250,000 - He is not retiring from farming but moving to another farm he owns several counties away. Please tell me I am correct when I say that the gain from sale is NOT subject to the Net Investment Income Tax on form 8960. Quote Link to comment Share on other sites More sharing options...
WITAXLADY Posted April 13, 2017 Report Share Posted April 13, 2017 wow - what a question - but I would say it is not subject.. Quote Link to comment Share on other sites More sharing options...
jasdlm Posted April 13, 2017 Report Share Posted April 13, 2017 Active business owners are exempt from the 3.8% tax when selling property that is part of their business [Sec. 1411(c)(1)(A)(iii)]. Seem to me that this would qualify? 2 Quote Link to comment Share on other sites More sharing options...
TAXMAN Posted April 13, 2017 Report Share Posted April 13, 2017 Ok I buy this as this was not investment held. Now what if the 1120-s (H&W owned 100% participation)sells out, complete liquidation. Passes out through the K-1 a large amount of capital gain due to the sale of the assets. Is this income then subject to the NIT tax? Quote Link to comment Share on other sites More sharing options...
TAXMAN Posted April 17, 2017 Report Share Posted April 17, 2017 Any thoughts on this matter? Quote Link to comment Share on other sites More sharing options...
gfizer Posted April 18, 2017 Author Report Share Posted April 18, 2017 13 hours ago, TAXMAN said: Any thoughts on this matter? I think it may depend upon whether your activity is passive. It's a very confusing subject. Quote Link to comment Share on other sites More sharing options...
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