I figured out that they royalty income was being double counted (royalty sched E, and capital gains per code 1235). This increased investment income tax since number was incorrectly high. I found this in form 8960. I put negative number of royalty amount in line 7 to correct double counting. This generates appropriate tax. Is this an acceptable way of generating correct answer? I don't want to inadvertently generate a flag. Please advise.
