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This article applies to:

  • Product: UltraTax CS
  • Return type: 1040 Individual

Form 8960 line 4b calculation

Form 8960 line 4b is for adjustment for net income or loss derived in the ordinary course of a non-section 1411 trade or business.
Form 8960 line 4a reports the amounts from Form 1040, Schedule 1, line 17. Line 4b is the adjustment to remove income or loss allocable to a non-section 1411 trade or business from the total reported on line 4a.
UltraTax CS determines a non-section 1411 trade or business using the following codes:
  • On the
    Rent
     screen,
    Type of property
     is
    7
     (Self-rental), with income.
  • On the
    Rent-2
     screen, the
    Passive activity code
     is
    3
    .
  • On the
    Rent-2
     screen, the
    Passive activity code
     is
    4
    .
  • On the
    4835-2
     screen, the
    Passive activity code
     is
    3
    .
  • On the
    4835-2
     screen, the
    Passive activity code
     is
    4
    .
  • On the
    K1-2
     screen,
    Passive activity code
     is
    3
      (non-passive income is not net investment income).
  • On the
    K1-2
     screen, the
    Passive activity code
     is
    4
      (non-passive income is not net investment income).
  • On the
    K1T-3
     screen, the
    Passive activity code
     is
    3
     (non-passive income is not net investment income).
  • On the
    K1T-3
     screen, the
    Passive activity code
     is
    4
     (non-passive income is not net investment income).
  • Any activity where
    Trade or business to which net investment income tax (NIIT) applies
     is
    2
     (No) is considered a non-section 1411 trade or business.
.

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