F2210 Sch AI

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  • #3927
    kaneohe
    Participant

    Suppose is the first time period on Sch AI you have a SALT deduction capped at 10K (along w/ other deductions). If you use the multiplier 4
    as specified for that time period, you will end up with a SALT deduction of 40K for the year in that column which would seem to violate the 10K cap…..but I don’t see anything in the instructions telling you to do otherwise.

    A similar thing would happen if you had a capital loss of 3K in the first
    time period.

    What is the proper thing to do in these cases?

    #3942
    kaneohe
    Participant

    https://www.taxact.com/support/986/2018/figuring-annualized-income-with-a-net-capital-loss

    I had considered using the maximum allowable loss at yr end and adjusting that loss down by the multiplying factor for each period so that the annual loss did not exceed the cap.

    The link above has an alternative strategy ……….use the multiplying factors given but cap the shorter period result at the annual max. This would result in even lower early period estimated taxes.

    Since IRS may not be giving explicit instructions (?) , perhaps like in 8960, any “reasonable” method will work…….at least for one yr.

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