! Deduction Limitations on Deductions Properly

CAUTION Allocable to Investment Income Worksheet to

calculate limitations for tax year 2025. Limitations under sections 67 and 68 are suspended in tax year 2025.

Line 10—Additional Modifications

On line 10, report additional deductions or modifications to NII that aren’t otherwise reflected on lines 1–9.

You may use line 10 to report properly allocable deductions that aren’t otherwise reflected on lines 1–9. See Regulations sections 1.1411-4(f) and 1.1411-4(g) for details.

If you operate a trade or business, don’t include

TIP expenses that have been deducted on other lines

of the Form 8960, such as depletion or depreciation reported on Schedules C, E, and F (Form 1040) and included on Form 8960, line 4a.

Special rule for traders in financial instruments or commodities. If your only business is trading in financial instruments or commodities, you may use any net loss amount on your Schedule C (Form 1040) as a deduction on line 10, and you don’t need to complete Schedule SE (Form 1040), Self-Employment Tax.

If you have more than one trade or business, you must complete Schedule SE (Form 1040) to determine whether you can include some or all of the trading business Schedule C (Form 1040) expenses as a deduction on line 10. Complete the Line 10 Worksheet for Traders in Financial Instruments That Maintain More Than One Trade or Business.

Note: See the Instructions for Schedule SE (Form 1040) for who must file a Schedule SE (Form 1040). Retain a copy of the Schedule SE (Form 1040) and the worksheet used to determine the expenses included as a modification on line 10 with your records. Don’t file the worksheet with Form 1040 or 1040-SR.