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Sale of farm & net investment income tax


gfizer

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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.  

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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?

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