Greetings,

I have a client that was a partner in a partnership that was bought out towards the end of 2020.  He received about a million dollars from the buyout and his accounting department has said that the full million will be taxed at the long-term capital gain rate.  We're trying to determine the appropriate estimated tax to make now.  I suggested paying 110% of last year's tax and qualifying for safe harbor so he can sit on the 1MM for the next four months and make a few thousand dollars, but the client would rather make a payment now.  I need to know if the NII tax applies in this situation.  Is the million dollars subject to NII tax?

Thank you!