Question
Ronald Trunk is single and independently wealthy. His wages come from his job as a vice-president at a local bank (founded by his great-grandfather) and
Ronald Trunk is single and independently wealthy. His wages come from his job as a vice-president at a local bank (founded by his great-grandfather) and all of his interest, dividends, and capital gains are from his large investment portfolio of publicly traded stocks and bonds. He also operates a small business in which he actively participates. His 2021 Form 1040 is almost complete and reports the following amounts:
Line 2a: $48,000 Line 2b: $53,000 Line 3a: $33,000 Line 3b: $45,000 Line 7: $23,000 Line 8 and Schedule 1, Line 3: $12,000 Line 11: $333,000
He has no investment expenses associated with this income, no foreign earnings exclusion, and lives where there is no state income tax.
Complete Form 8960 to calculate Ronald's 2021 net investment income tax.
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