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Form 8960
I'm using TT Deluxe desktop for Mac version. I cannot find where you input investment expenses that are deductible on Form 8960, line 9 as an offset to net investment income prior to the 3.8% tax being computed. Any guidance?
Mike9241Answer
Level 15
Apr 12, 2025 2:43 AM UTC
entries come from entries on schedule A. many investment expenses are not deductible for the NIIT tax
such as investment advisory fees.
deductible items include investment interest expense, a proration of state income taxes and investment expenses not subject to the 2 % limit under the old laws
Investment expenses are your allowed deductions, other than interest
expense, directly connected with the production of investment income.
For example, depreciation or depletion allowed on assets that produce
investment income is an investment expense.
Include investment expenses incurred directly by you or reported to
you on Schedule K-1 from a partnership, or by an S corporation, but
only if you are allowed a deduction on your return for the expense.
Investment expenses don’t include any deductions used in
determining your income or loss from a passive activity.
CAUTION
Don’t include any miscellaneous itemized deductions, which
aren’t allowed deductions in tax years beginning after
December 31, 2017, and before January 1, 2026
Mike9241
