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:
- TheFMV at S Election DateandAdj Basis at S Election Datecolumns in theDetail schedulestatement window on theDscreen
- TheOrdinary income: Recognized Built-In Gain (Loss)statement window on theDscreen
- TheRecognized Built-In Gain Carryovercolumn fields on theDscreen
- TheFair market value at S Corporation election date (S Corp)andAdjusted basis at S Corporation election date (S Corp)fields on theSalescreennoteThese fields are also available in theDisposaltab of theAssetmodule.
- TheNet unrealized built-in gain (S Corp)field on theInstPYscreen
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.
