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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
    note
    These 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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