Form 8960 - Cheat Sheet
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1Form 8960 Cheat Sheet
Subject
Coding
K-1
to NIIT
Required
Coding
Subject to NIIT:
Interest
Y
Dividends
Y
Royalties
Y
Annuities
Y
Capital Gain
Y
Sale of Residence (if no exclusion)
Y
Sale of Second Residence
Y
Kiddie Passive Income
Y
Trusts That Don't Distribute Income
Y
Y
Subject to NIIT and Coding Required:
Rents Except Self Rental (except Code 7)
Y
Y
K-1 Rental RE (with Active Participation)
Y
Y
2
K-1 Passive
Y
Y
1
Gain on Sale of Passive Activity
Y
Y
Business of Trading in Financial Commodities
Y
Y
Not Subject to NIIT:
W-2
N
Retirement Accounts
N
Unemployment
N
Social Security
N
Alimony Received
N
Alaska Permanent Dividend
N
Most Other Income
N
Exclusion Items
N
Deferral Items
N
Grantor Trusts
N
Not Subject to NIIT and Coding Required:
Schedule C (with material participation)
N
Y
Schedule F
N
Y
Self Rental
N
Y
K-1 with Material Participation (without Limitation)
N
Y
3
K-1 RE Professional
N
Y
4
Expenses to Offset Gross Income:
Capital Losses up to $3,000
Y
Investment Expenses
Y
Management Fees
Y
Tax Preparation Fees
Y
Investment Interest Expense
Y
Early Withdrawal Penalties
Y
State & city income taxes as a % of passive to total income
Y
Y
Note: This is a general rule of thumb but is not all inclusive.
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Parent category: Financial