Reply To: Net Investment Income Tax

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#2354
wanttoknow
Participant

MDM,

Page 12 of the Form 8960 instructions says: “For more information on what constitutes properly allocable deductions, see Regulations sections 1.1411-4(f)-(g).”

IRS Reg. 1.1411-4 says the following:

“(f) Properly allocable deductions

“(3) . . . . In determining net investment income, the following itemized deductions are taken into account:

“(iii) . . . . State, local, and foreign income . . . taxes . . . .”

https://www.law.cornell.edu/cfr/text/26/1.1411-4