Nilodop wrote:How do you know whether the excess over $10.000 of such taxes is comprised of property taxes or business-attributed state income taxes?
Section 67 presents the closest parallel I can think of. In the instructions for Form 8960, the limitation is treated as reducing each deduction pro-rata. That's how I think it should be done in this case too.
J. Maule wrote:Only in two limited situations, for limited purposes, has the IRS taken the position that certain deductions must be claimed. One involves the computation of self employment income for social security purposes. The other involves the earned income tax credit issue, itself tied by cross-reference to the self-employment question.
My point is that for the IRS to be able to take that position, it must be a plausible interpretation of some statute or other. There are only two possibilities I can conceive of:
- The IRC as written requires deductions that a taxpayer is entitled to claim be taken into account.
- The position derives from something outside the IRC such as section 208 of the Social Security Act.