Instructions For Form 8960 (2015) (Page 17 of 20) in pdf

Lines 9 and 10 — Application of Itemized Deduction Limitations on

Deductions Properly Allocable to Investment Income Worksheet—

continued

Keep for Your Records

Part IV — Reconciliation of Schedule A Deductions to Form 8960, lines 9 and 10 (Individuals Only)

(B)

IF Part III, line 8 is less

than Part III, line 4,

THEN divide line 8 by

(C)

line 4 AND enter the

Multiply the individual

amount in column (B).

amounts in column

IF the amounts

(A) by the amount in

reported on Part III,

column (B). Enter

lines 4 and 8 are

these amounts in the

(A)

equal, THEN enter

appropriate location

Reenter the amounts and descriptions from Part III, lines 1 – 3.

1.00 in column (B).

on lines 9 and 10.

Miscellaneous Itemized Deductions properly allocable to

investment income:

Description

Line

Amount

(a)

(b)

2. State, local, and foreign income taxes . . . . . . . . . . . . . . . .

Itemized Deductions Subject to Section 68 included on Line

3 of Part III:

(a)

(b)

would otherwise have been allowable but

4. The amount of the deduction

Line 10—Additional Modifications

for the fact that the terminating trust or

allowable under section 171(a)(1) for the

Use line 10 to report additional deductions

estate had negative net investment

amortizable bond premium on a taxable

and modifications to net investment

income upon termination. This amount

bond. Do not include the amount of bond

income that are not otherwise reflected in

may be some or all of the amount reported

premium amortization that is used to offset

lines 1-9. Enter amounts on line 10 as

on Schedule K-1 (Form 1041), line 11a.

interest income under section 171(e) on

positive numbers.

See Regulations section 1.1411-4(g)(4)

your Schedule B (Form 1040A or 1040),

(iii),

Interest and Ordinary Dividends. This

Note. Enter the amount on line 10 after

amount of bond premium amortization is

Certain amounts reported on

the application of section 67 or 68. See

already taken into account in computing

Schedule A (Form 1040), line 28:

Lines 9 and 10 — Application of Itemized

interest income on Form 8960, line 1.

1. The amount of the deduction

Deduction Limitations on Deductions

allowed to an annuitant for the annuitant's

Properly Allocable to Investment Income

If you are a partner in an Electing Large

last tax year under section 72(b)(3),

Worksheet, earlier, for assistance in

Partnership and receive a Schedule K-1

provided the income from the annuity (had

figuring the amount to report on line 10.

(Form 1065-B), Partner's Share of Income

the annuitant lived to receive such

(Loss) From an Electing Large

income) would have been included in net

You may use line 10 to report properly

Partnership, and box 2 contains a loss,

investment income and not otherwise

allocable deductions such as:

report this loss on line 10,

excluded as a distribution from a qualified

The penalty paid for an early withdrawal

To the extent these items are properly

plan,

of savings under section 62(a)(9) (Form

allocable to net investment income. See

1040, line 30),

2. Deduction for payment of amounts

Reasonable method

allocations, earlier,

under a claim of right if over $3,000, to the

The amount treated as an ordinary loss

1. All ordinary and necessary

extent that such repayments relate to

by a holder of a contingent payment debt

expenses paid or incurred during the tax

items of income included in net investment

instrument under Regulations section

year to determine, collect, or obtain a

income in a preceding year that began

1.1275-4(b) or an inflation-indexed debt

refund of any tax owed, but only to the

after 2012. See Pub. 525, Taxable and

instrument under Regulations section

extent the expenses are allocable to net

Nontaxable Income, for details,

1.1275-7(f)(1),

investment income (Schedule A (Form

Net negative periodic payments paid on

3. The amount of the deduction for

1040), line 22), and

a notional principal contract (NPC) that is

estate taxes allowed by section 691(c)

2. Amounts paid or incurred by the

referenced to property (including an index)

that is allocable to net investment income,

fiduciary of an estate or trust on account of

that produces (or would produce if the

except to the extent that the section 691(c)

administration expenses, including

property were to produce income) interest,

deduction is taken into account in

fiduciaries' fees and expenses of litigation,

dividends, royalties, or rents,

computing net gain on line 5(a) (or line 7 if

which are ordinary and necessary in

Excess deductions allocated to a

applicable), and

connection with the performance of the

beneficiary upon the termination of an

duties of administration.

estate or trust under section 642(h)(2) that

Instructions for Form 8960 (2015)

-17-

Instructions For Form 8960 (2015) Page 17

Related Articles

Related forms

Related Categories