This year, Justin B.'s share of S corporation income includes $4,000 of interest income, $5,000 of dividend income, and $40,000 of net income from the corporation's professional service business activity.
a. Assume that Justin B. materially participates in the S corporation. How much of his S corporation income is potentially subject to the Net Investment Income tax?
b. Assume that Justin B. does not materially participate in the S corporation. How much of his S corporation income is potentially subject to the Net Investment Income tax?