Reply To: Net Investment Income Tax

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#1932
wanttoknow
Participant

Kaye, I understand your response now. It’s not as complicated as it seemed at first glance.

On my copy of Reg. 1.1411-4, where it says “The deductions allowed by subtitle A”, I see I had noted “of what?”, but apparently had not tracked down subtitle A. Is that part of Reg. 1.1411?

I am surprised that the state income tax deduction for the N.I.I.T. is now limited to $10,000, because the draft 2018 Instructions for Form 8960 says nothing about this under “What’s New”, although it does mention other changes from last year’s tax legislation.

https://www.irs.gov/pub/irs-dft/i8960–dft.pdf

Yes, I will be reporting much more than $10,000 in income and real estate taxes on my 2018 Schedule A. But that’s nixed by the A.M.T. Can I still deduct $10,000 in income tax on the N.I.I.T.?

And, if so, can 2018 state income tax paid in 2019 be deducted on my 2019 Form 8960?