Question

LLC and packet from the CPA,states ---Portfolio Deductions subject to 2% disallowed by Federal, may be deductible on your state Taxes.?????

My wife has an LLC. The packet from the CPA states in the K-1 footnotes:

PORTFOLIO DEDUCTIONS SUBJECT TO 2% DISALLOWED BY FEDERAL, MAY BE DEDUCTIBLE IN YOUR STATE. ????? WE LIVE IN AZ.

Employee

While AZ does allow for itemized deductions, it does not appear that the portfolio deductions subject to 2% is an itemized deduction.

See the attached link to download a copy of the form and instructions:

*A reminder that posts in a forum such as this do not constitute tax advice.Also keep in mind the date of replies, as tax law changes.

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