- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
net investment income tax form 8960
This paragraph is in the IRS literature:.
"In order to arrive at Net Investment Income, Gross Investment Income (items described in items 7-11 above) is reduced by deductions that are properly allocable to items of Gross Investment Income. Examples of deductions, a portion of which may be properly allocable to Gross Investment Income, include investment interest expense, investment advisory and brokerage fees, expenses related to rental and royalty income, tax preparation fees, fiduciary expenses (in the case of an estate or trust) and state and local income taxes".
It seems to indicate that you can deduct investment advisory fees and allocate state income taxes to reduce your net investment income tax ( 3.8%). Problem is Turbo tax never asks me any questions regarding this area. Right now I take the standard deduction but include state taxes and advisory fees on schedule A anyway. I don’t know whether it is a turbo tax problem or I am reading it incorrectly. You might be interested yourself also.
March 27, 2021
11:45 AM