Lines 9 and 10 — Application of Itemized Deduction Limitations on
Deductions Properly Allocable to Investment Income Worksheet—
continued
Keep for Your Records
Part III — Application of Section 68 to deductions properly allocable to investment income (Individuals Only)
1. Enter the amount of Miscellaneous Itemized Deductions properly allocable to
investment income from column (C) of Part II:
Description
Line
Amount
(a)
(b)
2. Enter the amount of state, local, and foreign income taxes that are properly
allocable to investment income.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.
3. Enter the amounts of other Itemized Deductions subject to the section 68 limitation
and properly allocable to investment income before any itemized deduction
limitations (Description and Form 8960 line number where they will be reported):
Description
Line
Amount
(a)
(b)
4. Enter the total deductions properly allocable to investment income subject to the section 68 limitation. Enter
the sum of lines 1 through 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.
5. Enter the amount of total itemized deductions reported on Form 1040,
line 40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5.
6. Enter all other itemized deductions allowed but not subject to the section 68
deduction limitation:
(a) Investment Interest Expense . . . . . . . . . . . . . . . . . . . . .
(b) Casualty Losses (other than losses described in section
165(c)(1)) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c) Medical Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(d) Gambling Losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(e) Total of lines 6(a) through 6(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6e.
7. Subtract line 6e from line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7.
8. Enter the lesser of line 7 or line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8.
This is the amount of itemized deductions that are properly allocable to investment income after the application of the sections 67
TIP
and 68 deduction limitations. Use Part IV of this worksheet to reconcile this amount to the individual deduction amounts reported
on Form 8960, lines 9 and 10.
Instructions for Form 8960 (2015)
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