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Built-in gain tax calculation

The built-in gain tax is calculated on the Built-In Gains Tax Worksheet. UltraTax CS prints this worksheet when there's data entered in any of the following places:
  • The FMV at S Election Date and Adj Basis at S Election Date columns in the Detail schedule statement window on the D screen
  • The Ordinary income: Recognized Built-In Gain (Loss) statement window on the D screen
  • The Recognized Built-In Gain Carryover column fields on the D screen
  • The Fair market value at S Corporation election date (S Corp) and Adjusted basis at S Corporation election date (S Corp) fields on the Sale screen noteThese fields are also available in the Disposal tab of the Asset module.
  • The Net unrealized built-in gain (S Corp) field on the InstPY screen
The built-in gain tax is allocated to the category of income in which the tax was generated. For example, if the S Corporation disposed of both a long-term capital asset and an ordinary income asset that was subject to the built-in gain tax, a portion of the tax would be allocated to the long-term capital gain, and a portion of the tax would be allocated to the ordinary income.
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