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Data entry

Example: Enter unrecaptured Section 1250 gains

Use the following example to enter unrecaptured section 1250 gains.
Your client has a total Section 1231 gain of $50,000 and $20,000 of that gain is an unrecaptured Section 1250 gain subject to the 25-percent maximum capital gains tax rate. Use these steps to enter this information in the federal module.
  1. Enter the total Section 1231 gain of $50,000 in one of the following fields.
    • If the gain is passed through from a mutual fund on Form 1099-DIV, enter the amount in the
      Total capital gain distr
       field on the
      Income
      ,
      Int/Div
       tab.
    • If the gain is associated with a passive business activity, enter the amount under the Activities button, on the specific activity's 8582 S1231 LT G/L tab, in the
      Current year income or loss
       field.
    • If the gain is associated with a material participation or real estate professional activity, enter the amount in the
      Sec 1231/1245/1250 gain/loss
       field on the
      Income
      ,
      Form 4797
       tab.
  2. Enter the $20,000 unrecaptured Section 1250 gain in one of the following fields.
    • If the gain is passed through from a mutual fund on Form 1099-DIV, enter the amount in the
      Unrecaptured Sec 1250 gain
       field on the
      Income
      ,
      Int/Div
       tab.
    • If the gain isn't passed through from a mutual fund on Form 1099-DIV, enter the amount on line 1 or 6 of the
      Other Taxes
      ,
      Unrecap S1250 Gains
       tab.
note
Press F1 from these fields for additional information.

This article applies to:

  • Product: Planner CS