Instructions For Form 8960 - Net Investment Income Tax - Individuals, Estates, And Trusts - 2017 Page 14
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20investment interest expense deduction for
income taxes paid for the tax year if you
line 5. See Form 4952 for the instructions
your U.S. residency period.
took a credit for any portion of it. See
for line 5 for more information. The
section 275(a)(4).
amounts reported on line 9c are the
Note. If Form 4952 includes investment
amounts allowable after the application of
interest expense that’s deducted on
You can determine the portion of your
the deduction limitations imposed by
Schedule E (Form 1040) and already
state, local, and foreign income taxes
sections 67 and 68. See
Deductions
taken into account on line 4a, don’t include
allocable to net investment income using
subject to AGI limitations under section 67
the same amount on line 9a.
any reasonable method. See
Reasonable
or section
68, later.
method
allocations, earlier, and
Note. Enter the amount of miscellaneous
Note. If you own a CFC or QEF for which
Deductions subject to AGI limitations
investment expenses on Form 8960,
a section 1.1411-10(g) election isn’t in
under section 67 or section
68, later.
line 9c, net of any deduction limitations
effect, you may calculate your section
imposed by section 67 or section 68. See
163(d) investment expense deduction for
Note. Enter the amount of state, local, or
Lines 9 and 10 — Application of Itemized
NIIT purposes differently than for regular
foreign income taxes on Form 8960,
Deduction Limitations on Deductions
income tax purposes. See Regulations
line 9b, net of any deduction limitations
Properly Allocable to Investment Income
section 1.1411-10(c)(5) for additional
imposed by section 68. See
Lines 9 and
Worksheet
in these instructions for
guidance. Any modification to your section
10 — Application of Itemized Deduction
assistance in figuring the amount to report
163(d) investment expense deduction for
Limitations on Deductions Properly
on line 9c.
NIIT purposes is taken into account on
Allocable to Investment Income
line 6.
Worksheet
in these instructions for
Don’t include expenses that have
assistance in figuring the amount to report
been deducted on other lines of
TIP
on line 9b.
Line 9b—State, Local, and Foreign
the Form 8960, such as depletion
or depreciation reported on Schedule E
Income Tax
(Form 1040) and included on Form 8960,
Line 9c—Miscellaneous
Include state, local, and foreign income
line 4a.
Investment Expenses
taxes you paid for the tax year that are
Dual-status individuals include only tax
attributable to net investment income.
Investment expenses you incur that are
items related to their period of U.S.
Form 1040NR filers include only taxes
directly connected to the production of
residency. See
Dual-status
individual,
paid for the U.S. residency period of the
investment income are deductible
earlier.
tax year. Sales taxes aren’t deductible in
expenses in determining your net
computing net investment income. You
investment income. Generally, these
may not take a deduction for any foreign
amounts are reported on Form 4952,
Instructions for Form 8960 (2017)
-14-
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