Reply To: Net Investment Income Tax

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#2360
MDM
Participant

Thanks, I see the words “itemized deductions” but am having some difficulty interpreting what they mean.

https://www.law.cornell.edu/uscode/text/26/63 includes the following:
(d) Itemized deductions For purposes of this subtitle, the term “itemized deductions” means the deductions allowable under this chapter…
(e) Election to itemize
(1) In general

Unless an individual makes an election under this subsection for the taxable year, no itemized deduction shall be allowed for the taxable year. For purposes of this subtitle, the determination of whether a deduction is allowable under this chapter shall be made without regard to the preceding sentence.

Perhaps someone more versed in tax code lingo can resolve the whipsaw effect: first it says “allowable“, then not allowed (unless elected), then disregard the previous sentence for some purposes.

Any translators?