It depends. If you have SALT that is not related to any excluded income on your return, you will enter the full amount of your deduction from Schedule A. To arrive at net investment income (NII), items are reduced by deductions allowed against the income tax that are properly allocable to those items of gross income or net gain.
Line 9b - State, Local and Foreign Income Tax: You can determine the portion of your state, local, and foreign income taxes; state, local, and foreign real property taxes; as well as state and local personal property taxes allocable to NII using any reasonable method. See Reasonable method allocations, earlier.
- Enter the amount of state, local, or foreign income taxes; state, local, and foreign real property taxes; as well as state and local personal property taxes on Form 8960, line 9b.
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