Question: When an S corporation shareholder does not work for the entity, the Blank _ _ _ _ _ _ . Multiple choice question. income is

When an S corporation shareholder does not work for the entity, the Blank______
.
Multiple choice question.
income is subject to self-employment taxes
shareholder will always be required to pay net investment income tax on the allocated income
business income allocated to the shareholder is considered to be passive income
income is still eligible for the qualified business tax deduction

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