On form 8960, miscellaneous investment expenses on line 9c can be deducted only to the extent these items are deductible in Schedule A. As the new tax law has suspended the itemized miscellaneous deduction, these expenses are not deductible on form 8960 either.
Please see the instructions for form 8960, especially on page 18:
On form 8960, miscellaneous investment expenses on line 9c can be deducted only to the extent these items are deductible in Schedule A. As the new tax law has suspended the itemized miscellaneous deduction, these expenses are not deductible on form 8960 either.
Please see the instructions for form 8960, especially on page 18:
Is this correct for 9a and 9b too? In other words, if I am taking standard deduction (no schedule A) then I cannot deduct anything on 9a, 9b and 9c of form 8960?
No, you can still claim expenses on 9a and 9b, even if you take the standard deduction.
I am not able to access the form to enter the value. I called support and they can’t help either. Do you know how I can enter the value in TurboTax online version?
You do not enter directly on line 9a and 9b. They are transferred from entries in the corresponding sections.
Which corresponding sections as the values are blank on the form
9a - Investment Interest Expenses come from entries in Deductions & Credits > Retirement and Investments > Investment Interest Expenses.
9b - State, Local and Foreign Income Tax come from foreign tax reported on your 1099-DIV for example.
Should not 9b calculated as follow as one of the reasonable method <a rel="nofollow" target="_blank" href="https://support.cch.com/kb/solution.aspx/sw43364">https://support.cch.com/kb/solution.aspx/sw43364</a>
Investment interest expense is not flowing from investment interest expense to line 9a form 8960, How is this fixed
Based on my research it seems 9a , 9b only comes in play when you are itemizing (schedule A). I tried couple of software and all are doing the same.
IRS FAQ https://www.irs.gov/newsroom/questions-and-answers-on-the-net-investment-income-tax seems to include the advisory expenses as a deductible to calculate net investment income.
Doesn't #13 say that you can deduct investment advisory fees from investment income in calculating net investment tax?
To the limit that they're allowed. The instructions for form 8960 are very clear that they are not currently allowed to be deducted.