Well, the real question here is whether three halves of the deductions for passive income not definitely related to gross income is greater than one third the greater of taxes reclassified under high tax kickout or interest earned on private activity bonds, less of course the form 4797 long term suspended loss minus .15 of the allowable ordinary qualified gain after passive/at-risk limits. Finally, one always has to consider one’s qualified business income allocated to SSTB and whether that impacts the qualified dividend that didn’t meet required holding period, to say nothing of the section 179 carryover, let alone the allowable ordinary 1231 qualified gain after passive/at-risk limits.
And don’t even get me started on deductions for passive income not definitely related to gross income.
Yes, the tax code definitely needs to be more complicated than it already is.
Why does the government think taxpayers are smart enough to understand the tax code, but too stupid to get a voter ID card?