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ProSeries Form 8960: Where To Enter Deductible Brokerage Fees for the NIIT?

JazzyTaxes
Level 2

In ProSeries, where do I enter brokerage fees to deduct for the NIIT?

And maybe a larger question, are the brokerage fees actually deductible? 

I've seen conflicting information.

https://www.irs.gov/newsroom/questions-and-answers-on-the-net-investment-income-tax

https://www.irs.gov/pub/irs-pdf/i8960.pdf

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3 Comments 3
dascpa
Level 11
Copy and pasted from Google
 
Can you deduct brokerage fees on Form 8960?
 
In order for Advisory and Brokerage fees to be deductible on form 8960 (Net Income investment tax) they must be deductible on Schedule A. However due to the Tax Cuts and Jobs Act of 2017 (TCJA ) ,Advisory and Brokerage fees are no longer deductible (suspended for tax years 2018 to 2025)
JazzyTaxes
Level 2

Copy and pasted from IRS (hence the conflicting information):

13. What investment expenses are deductible in computing NII?

In order to arrive at Net Investment Income, Gross Investment Income (items described in items 7-11 above) is reduced by deductions that are properly allocable to items of Gross Investment Income. Examples of deductions, a portion of which may be properly allocable to Gross Investment Income, include investment interest expense, investment advisory and brokerage fees, expenses related to rental and royalty income, tax preparation fees, fiduciary expenses (in the case of an estate or trust) and state and local income taxes.

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Just-Lisa-Now-
Level 15
Level 15

" a portion of which MAY be properly allocable to Gross Investment Income"

and due to TCJA these are not.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪