@Smallmfgrbizguy did you read the special rules in the NIIT form 8960 instructions for those regarding disposition of your interest in in the S-Corp Disposition of Partnership Interest or S Corporation Stock.....
In general, an interest in a partnership or S corporation isn’t property held for use in a trade or business and, therefore, gain or loss from the sale of a partnership interest or S corporation stock is included in your
net investment income.
Adjustment The amount of the gain or loss from the disposition for regular income tax purposes is included on Form 8960, line 5a, as a gain or loss. If you materially participated (as defined under the passive activity loss rules) in a trade or business activity of the partnership or S corporation (or one of its subsidiaries) and that trade or business activity isn’t the trade or business of trading in financial instruments or securities, then you must calculate the adjustment to report on line 5c. The adjustment described below only applies to dispositions of equity interests in partnerships and stock in S corporations and doesn’t apply to gain or loss recognized on, for example, indebtedness owed to the taxpayer by a partnership or S corporation. For more information on how to calculate the adjustment to report on line 5c, see Proposed Regulations section 1.1411-7.
Note. If the tax basis of the interest in the partnership or S corporation for NIIT purposes is different than for regular income tax purposes due to certain adjustments associated with income from CFCs or QEFs, the amount of gain or loss may exceed the amount reported for regular income tax purposes.
Required statements. Attach a statement to your return for the year of disposition. Your statement must include: • The name and taxpayer identification number of the partnership or S corporation of which the interest was transferred, • The amount of the transferor's gain or loss on the disposition of the interest for regular income tax purposes included on line 5a, • The information provided by the partnership or S corporation to the transferor relating to the disposition (if any), and • The amount of adjustment to gain or loss due to basis adjustments attributable to ownership in certain CFCs and QEFs
proposed reg
https://keitercpa.com/wp-content/uploads/2014/01/Final-Regulations-Clarify-Net-Investment-Income-Tax...
also
https://www.thetaxadviser.com/issues/2014/apr/clinic-story-10.html
also
https://www.forbes.com/sites/anthonynitti/2013/11/27/irs-issues-final-net-investment-income-tax-regu...
