Christian Posted December 14, 2022 Report Share Posted December 14, 2022 In reviewing the rules for this form I come to an allowable deduction "State, local, and foreign income taxes if properly deducted on your return when calculating your U.S. regular income tax". Since state and local taxes are now limited to a $10,000 ceiling the client simply cannot use Schedule A. In my reading of this he will not be able to use any of the taxes as a deduction on this Form 8960. Any input is appreciated. Quote Link to comment Share on other sites More sharing options...
Lee B Posted December 15, 2022 Report Share Posted December 15, 2022 See the instructions for line 9b Quote Link to comment Share on other sites More sharing options...
Christian Posted December 15, 2022 Author Report Share Posted December 15, 2022 Since his deduction would be $10,000 are you saying to prorate this amount? I would assume they would accept a proration of the percentage of his AGI that is applicable to his investment income. I wondered about that but he will not be able to use Schedule A hence my thinking the taxes would be excluded from deduction. This is one of these rarely encountered items I infrequently run into and luckily I don't. Quote Link to comment Share on other sites More sharing options...
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