In 2015, a C corp that I worked at was sold. The stock of the C corp was held by an LLC which I was a partner in, and the proceeds will be reported on a K-1 as a combination of long term capital gains and dividend income. My question is if this sale will be subject to the Net Investment Income tax. What I've read so far seems to suggest that it would not be since I materially participated in the business during the year. Is that the case and is this changed in any way due to the stock being held by the LLC rather than by me directly?
If the income is not subject to NIIT, is line 5b on Form 8960 the right place to adjust this in TurboTax?
