I need to know how line 11 on form 4562 is calculated 2016 return.

I did not enter that amount anywhere. Where does it come from? How does it get there? I know what the IRS says about it.

posted

Line 11 The total cost you can deduct is limited to your taxable income from the active conduct of a trade or business during the year. You are considered to actively conduct a trade or business only if you meaningfully participate in its management or operations. A mere passive investor is not considered to actively conduct a trade or business.

https://www.irs.gov/pub/irs-pdf/i4562.pdf at p.5.