Looking for a Tax Form 8960 Templates? Download it for free!

Lines 9 and 10 — Application of Itemized Deduction Limitations on

Deductions Properly Allocable to Investment Income Worksheet—

continued

Keep for Your Records

Part IV — Reconciliation of Schedule A Deductions to Form 8960, lines 9 and 10 (Individuals Only)

(B)

IF Part III, line 8 is less

than Part III, line 4,

THEN divide line 8 by

(C)

line 4 AND enter the

Multiply the individual

amount in column (B).

amounts in column

IF the amounts

(A) by the amount in

reported on Part III,

column (B). Enter

lines 4 and 8 are

these amounts in the

(A)

equal, THEN enter

appropriate location

Reenter the amounts and descriptions from Part III, lines 1 – 3.

1.00 in column (B).

on lines 9 and 10.

Miscellaneous Itemized Deductions properly allocable to

investment income:

Description

Line

Amount

(a)

(b)

2. State, local, and foreign income taxes . . . . . . . . . . . . . . . .

Itemized Deductions Subject to Section 68 included on Line

3 of Part III:

(a)

(b)

estate had negative net investment

interest income under section 171(e) on

Line 10—Additional Modifications

income upon termination. This amount

your Schedule B (Form 1040A or 1040),

Use line 10 to report additional deductions

may be some or all of the amount reported

Interest and Ordinary Dividends. This

and modifications to net investment

on Schedule K-1 (Form 1041), line 11,

amount of bond premium amortization is

income that aren’t otherwise reflected in

code A. See Regulations section

already taken into account in computing

lines 1–9. Enter amounts on line 10 as

1.1411-4(g)(4)(iii),

interest income on Form 8960, line 1.

positive numbers.

Certain amounts reported on

If you’re a partner in an Electing Large

Schedule A (Form 1040), line 28:

Partnership and receive a Schedule K-1

Note. Enter the amount on line 10 after

(Form 1065-B), Partner's Share of Income

1. The amount of the deduction

the application of section 67 or 68. See

(Loss) From an Electing Large

allowed to an annuitant for the annuitant's

Lines 9 and 10 — Application of Itemized

Partnership, and box 2 contains a loss,

last tax year under section 72(b)(3),

Deduction Limitations on Deductions

report this loss on line 10,

provided the income from the annuity (had

Properly Allocable to Investment Income

To the extent these items are properly

the annuitant lived to receive such

Worksheet

in these instructions for

allocable to net investment income. See

income) would’ve been included in net

assistance in figuring the amount to report

Reasonable method

allocations, earlier,

investment income and not otherwise

on line 10.

excluded as a distribution from a qualified

1. All ordinary and necessary

plan,

expenses paid or incurred during the tax

You may use line 10 to report properly

year to determine, collect, or obtain a

allocable deductions such as:

2. Deduction for payment of amounts

refund of any tax owed, but only to the

The penalty paid for an early withdrawal

under a claim of right if over $3,000, to the

extent the expenses are allocable to net

of savings under section 62(a)(9),

extent that such repayments relate to

investment income (Schedule A (Form

The amount treated as an ordinary loss

items of income included in net investment

1040), line 22), and

by a holder of a contingent payment debt

income in a preceding year that began

instrument under Regulations section

after 2012. See Pub. 525, Taxable and

2. Amounts paid or incurred by the

1.1275-4(b) or an inflation-indexed debt

Nontaxable Income, for details,

fiduciary of an estate or trust on account of

instrument under Regulations section

administration expenses, including

3. The amount of the deduction for

1.1275-7(f)(1),

fiduciaries' fees and expenses of litigation,

estate taxes allowed by section 691(c)

Net negative periodic payments paid on

which are ordinary and necessary in

that’s allocable to net investment income,

a notional principal contract (NPC) that’s

connection with the performance of the

except to the extent that the section 691(c)

referenced to property (including an index)

duties of administration.

deduction is taken into account in

that produces (or would produce if the

computing net gain on line 5(a) (or line 7, if

Special rule for traders in financial in-

property were to produce income) interest,

applicable), and

struments or commodities. If your only

dividends, royalties, or rents,

business is trading in financial instruments

4. The amount of the deduction

Excess deductions allocated to a

or commodities, you may use the net loss

allowable under section 171(a)(1) for the

beneficiary upon the termination of an

amount on your Schedule C (Form 1040)

amortizable bond premium on a taxable

estate or trust under section 642(h)(2) that

as a deduction on line 10, and you don’t

bond. Don’t include the amount of bond

would otherwise have been allowable but

premium amortization that’s used to offset

for the fact that the terminating trust or

Instructions for Form 8960 (2017)

-17-

Instructions For Form 8960 - Net Investment Income Tax - Individuals, Estates, And Trusts - 2017 Page 17

Related Articles

Related forms

Related Categories