I have some long term capital gains shown on Schedule K-1. I am doing Standard deduction as Turbo tax suggested. It shows zero value in 9b on form 8560.
Is Turbo tax correct in doing that? I dont even know what my itemized de duction number would be because Turbo tax never gave me that number or asked for it, so won't know if this deduction for State taxes paid would be applicable or not.
Say, I have a total AGI of 300k and therefore my excess for Net Investment income tax calculation is 50000. TT calculated NII @ 3.8%. However, i have paid State tax on this 50k at 5% . So should i deduct the 2500 paid as State tax in 9b in Form 8960 to reduce my NII? My Standard deduction number would probably be more than what i would get in itemized deduction.
Any inputs from the TT folks would be helpful.
thanks
