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A trust holds assets that will generate net investment income (NII) and trigger the additional Medicare tax. To reduce the entity's NII tax, the trustee
A trust holds assets that will generate net investment income (NII) and trigger the additional Medicare tax. To reduce the entity's NII tax, the trustee should: O a. Distribute all of the NII to trust beneficiaries. O b. Sell the NII assets and invest in high-yield bonds instead. Oc Retain all of the NII every tax year Od. Increase the turnover rate of the investments that the entity holds.
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