By default and in compliance with the Schedule B form instructions, interest and dividend amounts entered on the Broker screen are identified with the Payer’s Name for Schedule B reporting purposes. If the same payer name appears on more than one unit of the Broker screen, mark the Include last four digits of account number in payer name on Schedule B field, and the payer description will include the last four digits entered in the Account number field at the top of the screen.

Enter interest income information (including foreign amounts for Form 1116) from Forms 1099-INT and 1099-OID to complete Part I of Schedule B. Use the statement provided to enter multiple payers and codes to classify the interest income. If the paid amount is less than $1,500 and no special codes are needed, enter the amount directly in the Broker screen. The information that follows describes how information entered in the attached statement affects the calculation of the client's federal and state tax returns.

• F/S: Use this field only if you are preparing multiple-state tax returns. For multiple-state returns, make duplicate line entries of an interest item for each state as necessary, with a different postal code for each entry. In the F/S field, enter S for all but one of your duplicate line entries. The federal application disregards entries coded S.

  1040 Massachusetts and Pennsylvania users only: When you enter multiple lines of data for a payer, you must enter code S in the F/S field on the line with the postal code of the other state. Do not enter code S on the line that contains postal code MA or PA.

• Type Code: Enter a code to identify interest income that is an adjustment to an interest amount (such as nominee or accrued interest) or Series EE or I U.S. government bond interest eligible for the Form 8815 exclusion. The type code applies only to taxable interest entered in the Interest Income field.

Taxable Interest:

Leave the Type Code field blank for an interest item that is taxable on the federal 1040 return.

• State processing: For interest items with the Type Code field blank, enter a percentage in the US Ob % field to indicate the portion, if any, that is attributable to U.S. government obligations (nontaxable to states).

Municipal and Other Tax-Exempt Interest:

Enter total tax-exempt interest (including interest income attributable to private activity bonds issued after 8/7/86) in the Tax Exempt field in the statement. Items entered in this field transfer to the Tax-exempt interest line on Form 1040, Page 1. If a portion of the tax-exempt income is attributable to private activity bonds issued after 8/7/86, you must also enter that portion in the AMT Int Income (PAB) field in the statement. Amounts entered in this field will be used for Form 6251, Alternative Minimum Tax, calculations and will transfer to the appropriate line on Form 6251.

• State processing: Enter any amount or percentage in the In-State Muni $ or % field to indicate the portion of the amount entered in the Tax Exempt field, if any, that is nontaxable to the integrated state.

Adjustment Amounts:

Enter code 3, 4, 5, or 6 for nominee, accrued, OID, or ABP adjustment items. If an item of interest income requires an adjustment, enter the total amount received on one line, then enter the adjustment amount on a separate line with a type code of 3, 4, 5, or 6. Enter the adjustment as a positive amount when using one of these codes. For type codes 3 through 6, UltraTax CS calculates a subtotal for each code and subtracts the adjustment amounts on Schedule B.

Series EE or I Bond Interest:

Enter code 7 if the item is a Series EE or I bond interest, eligible for the Form 8815 exclusion. If you enter type code 7, the US Ob $ or % field automatically defaults to 100.000 percent.

• Payer: Enter the payer name. A custom fieldview is available in this field.
• Interest Income: Enter taxable interest income amounts and adjustments to interest amounts from Forms 1099-INT and 1099-OID or similar statements to complete Part I of Schedule B. Do not enter tax-exempt interest in this field.
• Tax Exempt: Enter total tax-exempt interest amounts (including interest income attributable to private activity bonds issued after 8/7/86). This amount may be reported on Form 1099-INT, box 8. Do not enter tax- exempt interest in the Interest Income field.
• AMT Int Income (PAB): Enter interest income attributable to private activity bonds issued after 8/7/86. This amount may be reported on Form 1099-INT, box 9. Amounts entered in this field are used for Form 6251 calculations. You must also enter the amount in the Tax Exempt field for Schedule B purposes.
• Early W/D Penalty: Enter the early withdrawal penalty amount reported on Form 1099-INT. This amount will transfer to Schedule 1 (Form 1040), line 30.
• Inv Exp: Enter the investment expenses reported on Form 1099-INT. This amount will transfer to Schedule A, line 23.
• Fed/State W/H: Enter withholding amounts reported on Form 1099-INT. You may enter both federal and state withholding in this screen. Federal withholding amounts entered here will transfer to Form 1040, Page 2, line 16. State withholding amounts will transfer to Schedule A, line 5a, and also the applicable line of the taxpayer's state return.

  Michigan Note: If state withholding is entered with a Michigan postal code, the data will transfer to the statement attached to the Form 1099 Miscellaneous, interest, and dividend information field in the MIGen screen in 1040-MI. The taxpayer's employer identification number must be entered in the EIN field in that statement for purposes of Michigan Schedule W.

• US Ob $ or %: For state processing, enter a percentage in this field if any portion of the taxable interest income is attributable to U.S. government obligations (nontaxable to the state). For example, enter 12.500 in this field if the item is 12.50 percent U.S. government interest; enter 25 in this field if $25 of interest is U.S. Government interest. Note that the US Ob $ or % field is applicable only for interest items entered in the Interest Income field. UltraTax CS disregards a US Ob $ or % entry for items entered in the Tax Exempt and AMT Int Inc (PAB) fields.
• In-State Muni $ or %: For state processing, enter either an amount or a percentage in this field to indicate the portion of the municipal or other tax-exempt interest income (items entered in the Tax Exempt field) that is nontaxable to the integrated state. For example, enter 8.000 in this field if the item is 8.0 percent attributable to municipal obligations of the integrated state; enter 50 in this field if $50 of the tax exempt interest is attributable to municipal obligations of the integrated state. Note that the In-State Muni $ or % field is applicable only for interest items entered in the Tax Exempt field. UltraTax CS disregards an In-State Muni $ or % entry for items entered in the Interest Income and AMT Int Inc (PAB) fields.
• In-State Source %: This field is applicable only to part-year resident and nonresident state returns. In-State Source % defaults to 100 percent for part-year resident state returns if the part-year resident state is entered in the State field. However, In-State Source % defaults to zero percent for all nonresident state returns and part-year resident state returns if the State field is blank or does not match the part-year resident state being processed.
• State: Enter a state postal code unless you are processing one resident state return or no state return. For a single resident state return, a blank State field will allow the federal amounts to transfer to the state return. If this field is blank, the related amount will not transfer to any part-year resident and/or nonresident integrated state returns.

  When processing two or more state returns, make duplicate line entries for those interest items where you must enter different information for each state. For example, a different In-State Muni % or In-State Source % may be required for each state. Enter a postal code to direct each line entry to a particular state return. When duplicate line entries are used, enter S in the F/S field for all but one of your duplicate entries, so that the federal application disregards the "state only" entries. The state applications disregard entries with F in the F/S field as well as any entries with S in the F/S field that also have an out-of-state postal code.

  Note: When processing a nonresident state return with a resident return, the duplicate line entry is not always necessary. Depending on how the entry is sourced, do one of the following:

  • If the entry is sourced to the nonresident state, enter information for the nonresident State, the In-State Source %, and if applicable, the US Ob $ or % and/or In-State Muni $ or %. If the entry also has an In-State Muni $ or % attributable to the resident state, a duplicate line entry is necessary; enter S in the F/S field and enter the resident state in the State field.
  • If the entry is sourced to the resident state, only a single entry is needed. Leave the F/S field blank. You may enter the resident state in the State field or leave it blank. If applicable, also enter the US Ob $ or % and/or In-State Muni $ or % for the resident state.

  See State fields for more information.

• State Use: The codes that are available in this field are specific to the state postal code entered in the State field. If state use codes are not applicable to the entered state, state use codes will not be available in most instances. (See the following Utah note for an exception.) Enter a code as applicable for processing the 1040 state return.

  Notes

  • 1040 Alabama, Georgia, Kansas, Kentucky, Missouri, Nebraska, New York, Vermont users only: Enter code 1 to identify state sourced tax credit bond interest included in federal AGI that is not taxable on the specified state return. Examples of applicable interest reported on the federal return and included in adjusted gross income include interest from Build America Bonds or Recovery Zone Bonds.
  • 1040 Indiana users only: The Indiana tax return does not use the In-State Muni $ or % and In-State Source % fields that appear in this statement. If a federally tax exempt item is taxable on the Indiana return, enter code 7 in the State use field.
  • 1040 Utah users only: The Utah tax return does not use the In-State Muni $ or % and In-State Source % fields that appear in this statement. If a federally tax exempt item is taxable on the Utah return, enter code 3 in the State use field. The state use code is available when the Utah return is attached to the open client, even when UT (Utah) is not entered in the corresponding State field.
  • 1040 Pennsylvania users only: State use code 8 is applicable for Philadelphia returns.
  • 1040 Wisconsin users only: For interest earned from a health savings account which is subject to Wisconsin tax, enter S in the F/S column, WI in the State column, and the state use code in the State Use column. These entries enable the interest amount to appear as taxable on Schedule I, line 5, column II.
• OID Box: This column is used by states that support withholding records associated to Form 1099-OID, Enter 1 if the income is reported in Box 1, Original issue discount. Enter 2 if the income is reported in Box 2, Other periodic interest. Enter 8 if the income is reported in Box 8, Original issue discount on U.S. Treasury obligations. The code needs to be entered when state withholding is present. States that support withholding associated to Form 1099-OID are KY, MA, ND, NE, OH, and PA.
• Foreign Amt (If different): Use this field only when the amount of foreign source income used to calculate the foreign tax credit is different from the amount entered in the Interest Income field on the same line. When this field is blank and taxes paid are entered in the Foreign Tax Paid field, UltraTax CS will use the amount in the Interest Income field as foreign source income for Form 1116 purposes.
• Foreign Tax paid: Enter the amount of foreign taxes paid on foreign interest income. UltraTax CS will use the amount entered here to calculate Form 1116.

• X if Foreign: UltraTax CS marks this field automatically when you enter an amount in the Foreign Amt (If different) field or in the Foreign Tax Paid field. When this field is marked, the amount is considered to be foreign and will be transferred to Form 1116 to be included in the calculation of the foreign tax credit. This indicator may also be manually added or removed.

  Notes

  • Enter data in the Interest Income statement if the client received foreign interest income and paid foreign tax on that income. UltraTax CS treats all income items indicated as foreign in this statement as foreign-source for Form 1116 purposes.
  • If you enter foreign data in this statement, a 1116 screen automatically completes with the information necessary to calculate Form 1116. You can edit or add information to the 1116 screen.
  • When processing married filing joint returns that use the Filing Status Optimization utility, use this statement to make entries only if you do not need to enter further information in the 1116 screen.
  • If using multi-line data entry, select Foreign Columns from the Column menu to display all applicable foreign data entry. You can also use the globe button on the toolbar to show or hide the foreign columns. (To use multi-line data entry, choose Setup > User Preferences, click the Data Entry tab, and mark the Enable multi-line statements box.

  The following table lists the fields in the 1116 screen that complete automatically, as well as the subsequent treatment of the information on Form 1116.

  Automatically completed the 1116 screen fields	Form 1116
  Description	Passive Income from B&D
  Category of Income	Passive Income
  Description of income for line 1a	Dividends & Interest
  Country code/name or Mutual fund or other regulated investment company (RIC) income	Field data
  Foreign gross income	Total taxable interest income
  Foreign long-term cap gain/loss	Capital Gain/Loss Worksheets
  Foreign qualified dividends	Total taxable dividend income
  Date paid or accrued	1099 Tax
  In US dollars - taxes withheld on: Interest	Total foreign taxes paid

• FATCA: Enter X if the FATCA box is marked in the source document, indicating that the payer has satisfied its FATCA filing requirement via issuance of the source document. When you mark this field, an informational diagnostic reminds you that the taxpayer may also have a separate FATCA requirement to file Form 8938 and/or FINCEN Form 114. Review Form 8938 and/or FinCEN Form 114 filing instructions to determine if any filing requirements apply.
• Do Not Proforma: Enter X in this field to delete the item on next year's proforma.

Enter dividend income (including foreign amounts for Form 1116) from Form 1099-DIV to complete Part II of Schedule B. Use the statement provided to enter multiple payers and type codes. If the paid amount is less than $1,500 and no special codes are needed, enter the amounts directly in the Broker screen. The information that follows describes the fields that appear in the attached statement:

• F/S: Use this field only if you are preparing multiple-state tax returns. For multiple-state returns, make duplicate line entries of a dividend item for each state as necessary, with a different postal code for each entry. In the F/S field, enter S for all but one of your duplicate line entries. The federal application disregards entries coded S.

  1040 Massachusetts and Pennsylvania users only: When you enter multiple lines of data for a payer, you must enter code S in the F/S field on the line with the postal code of the other state. Do not enter code S on the line that contains postal code MA or PA.

• Type Code: Enter a code to indicate that the income item is a nominee adjustment amount.

Taxable Dividends:

Leave the Type Code field blank for a dividend item that is taxable on the federal 1040 return.

• State processing: For dividend items with the Type Code field blank, enter an amount or percentage in the US Ob $ or % field to indicate the portion, if any, that is attributable to U.S. government obligations (nontaxable to the state).

Municipal and Other Tax-Exempt Dividends:

Enter total tax-exempt dividends (including dividend income attributable to private activity bonds issued after 8/7/86) in the Tax Exempt Amount field in the statement. Items entered in this field transfer to the Tax-exempt interest line on Form 1040, Page 1. If a portion of the tax-exempt income is attributable to private activity bonds issued after 8/7/86, you must also enter that portion in the AMT Exempt Div (PAB) field in the statement. Amounts entered in these fields are used only for Form 6251, Alternative Minimum Tax, calculations.

• State processing: Enter an amount or percentage in the In-State Muni $ or % field to indicate the portion of the amount entered in the Tax Exempt Amount field, if any, that is nontaxable to the integrated state.

Nominee Amounts:

If an item of dividend income requires a nominee adjustment, enter the total amount received on one line, then enter the nominee amount on a separate line with a type code of 3. Enter the nominee adjustment as a positive amount. UltraTax CS calculates a subtotal of items with type code 3 and subtracts the nominee amount on Schedule B.

• Payer: Enter the payer's name. A custom fieldview is available in this field.
• Ordinary Dividend: Enter ordinary dividend amounts from Form 1099-DIV. Do not enter tax-exempt dividends in this field.
• Qualified Dividend: Enter qualified dividend amounts from Form 1099-DIV. Do not enter tax-exempt dividends in this field.
• Total Cap Gain: Enter total capital gain distribution amounts from Form 1099-DIV or similar statements.
• Sec. 1250: Enter section 1250 capital gain distribution amounts from Form 1099-DIV or similar statements.
• Sec 1202: Part or all of the section 1202 gain entered in this field may be eligible for an exclusion from income. The taxpayer must have held an interest in the RIC/REIT that sold the qualified small business stock (QSB) on the date the QSB was acquired and continuously until the stock was sold.

• 1202 Excl Code: If the taxpayer qualifies for the exclusion, enter the code that represents the appropriate exclusion or use the fieldview to make your selection.

  Notes:

  • Gain on the exchange of qualified small business stock acquired after February 17, 2009, in a qualified business entity held more than five years is subject to a 50 percent exclusion.
  • Gain on the exchange of qualified small business stock acquired after December 21, 2000, in a qualified business entity (within an empowerment zone) and held more than five years is subject to a 60 percent exclusion.
  • Gain on the exchange of qualified small business stock acquired after February 17, 2009, and on or before September 27, 2010 in a qualified business entity held more than five years is subject to a 75 percent exclusion.
  • Gain on the exchange of qualified small business stock acquired after September 27, 2010, and before January 1, 2014 in a qualified business entity held more than five years is subject to a 100 percent exclusion.
• 28% Cap Gain: Enter 28-percent capital gain distribution amounts from Form 1099-DIV or similar statements.
• Tax Exempt Amount: Enter total tax-exempt dividend amounts (including dividend income attributable to private activity bonds issued after 8/7/86). This amount may be reported on Form 1099-DIV, box 11. Do not enter tax-exempt dividends in the Ordinary Dividend or Qualified Dividend fields.
• AMT Exempt Div (PAB): Enter dividend income attributable to private activity bonds issued after 8/7/86. This amount may be reported on Form 1099-DIV, box 12. Amounts entered in this field are used for Form 6251 calculations. You must also enter the amount in the Tax Exempt Amount field for Schedule B purposes.
• Sec. 199A Div: Enter the portion of the amount in box 1a that may be eligible for the 20% qualified business income deduction under section 199A. This amount may be reported on Form 1099-DIV, box 5. This amount will be used for the qualified business income deduction calculations.
• Inv Exp: Enter the investment expenses reported on Form 1099-DIV. This amount transfers to Schedule A, line 23.
• Fed W/H: Enter withholding amounts reported on Form 1099-DIV. Federal withholding amounts entered here transfer to Form 1040, Page 2, line 16.
• State W/H: Enter withholding amounts reported on Form 1099-DIV. State withholding amounts entered here transfer to Schedule A, line 5a.
• US Ob $ or %: For state processing, enter either an amount or a percentage in this field if any portion of the dividend income is attributable to U.S. government obligations (nontaxable to the state). For example, enter 12.500 in this field if the item is 12.50 percent attributable to U.S. government obligations; enter 25 in this field if $25 of interest is U.S. Government interest. Note that the US Ob $ or % field is applicable only for dividend items entered in the Ordinary Dividend field. UltraTax CS disregards a US Ob $ or % entry for items entered in the Tax Exempt Amount and AMT Exempt Div (PAB) fields.

• In-State Muni $ or %: For state processing, enter either an amount or a percentage in this field to indicate the portion of the municipal or other tax-exempt dividend income (items entered in the Tax Exempt Amount field) that is nontaxable to the integrated state. For example, enter 8.000 in this field if the item is 8.0 percent attributable to municipal obligations of the integrated state; enter 50 in this field if $50 of the tax exempt interest is attributable to municipal obligations of the integrated state. Note that the In-State Muni $ or % field is applicable only for dividend items entered in the Tax Exempt Amount field. UltraTax CS disregards an In-State Muni $ or % entry for items entered in the Ordinary Dividend and AMT Exempt Div (PAB) fields.

  Minnesota Note: If less than 95 percent of the federal tax-exempt interest dividend from a mutual fund came from bonds issued by Minnesota, all of the federal tax-exempt interest dividend from that fund is taxable to Minnesota. 1040 -MN automatically disregards an In-State Muni % entry of less than 95 percent when using a Minnesota postal code.

• In-State Source %: This field is applicable only to part-year resident and nonresident state returns. In-State Source % defaults to 100 percent for part-year resident state returns if the part-year resident state is entered in the State field. However, In-State Source % defaults to zero percent for all nonresident state returns and part-year state returns if the State field is blank or does not match the part-year resident state being processed.

   

  Part-Year Resident Returns:

  Enter a percentage if a portion of the dividend item is in-state source income. For example, enter 50.000 in this field if the item is 50-percent in-state source income for the state indicated in the State field. When this percentage field is blank, part-year resident returns calculate as if you have entered 100.000. Enter 0.000 in this field if none of the dividend income is in-state source income for the state that corresponds to the entry in the State field.

  Nonresident Returns:

  Enter a percentage and the applicable postal code if a portion of the dividend item is in-state source income. Leave this field blank if none of the dividend income is in-state source income for the state indicated in the State field.

• State: Enter a state postal code unless you are processing one resident state return or no state return. For a single resident state return, a blank State field will allow the federal amounts to transfer to the state return. If this field is blank, the related amount will not transfer to any part-year resident and/or nonresident integrated state returns.

  When processing two or more state returns, make duplicate line entries for those dividend items for which different information must be entered for each state. For example, a different In-State Muni % or In-State Source % may be required for each state. Enter a postal code to direct each line entry to a particular state return. When duplicate line entries are used, enter S in the F/S field for all but one of your duplicate entries, so that the federal application disregards the "state only" entries.

  Note: When processing a nonresident state return with a resident return, the duplicate line entry is not always necessary. Depending on how the entry is sourced, do one of the following:

  • If the entry is sourced to the nonresident state, enter information for the nonresident state in the State, In-State Source %, and, if applicable, US Ob $ or % and/or In-State Muni $ or % fields. If the entry also has an In-State Muni % attributable to the resident state, a duplicate line entry is necessary; enter S in the F/S field and enter the resident state in the State field.
  • If the entry is sourced to the resident state, only a single entry is needed. Leave the F/S field blank. The State may be entered as the resident state or it may be left blank. If applicable, also enter the US Ob $ or % and/or In-State Muni $ or % for the resident state.

  See State fields for more information.

• State Use: The codes that are available in this field are specific to the state postal code entered in the State field. If state use codes are not applicable to the entered state, state use codes will not be available in most instances. (See the following Utah note for an exception description.) Enter a code as applicable for processing the 1040 state return.

  Notes:

  • 1040 Utah users only: The Utah tax return does not use the In-State Muni % and In-State % fields that appear in this statement. If a federally tax exempt item is taxable on the Utah return, enter code 3 in the State use field.
  • 1040 Pennsylvania users only: State use code 10 is applicable for Philadelphia returns.
• Foreign Ord Div: Use this field only when the amount of foreign source income used to calculate the foreign tax credit is different from the amount entered in the Ordinary Dividend field on the same line. When this field is blank and taxes paid are entered in the Foreign Tax Paid field, UltraTax CS uses the amount entered in the Ordinary Dividend field as foreign source income for Form 1116 purposes.
• Foreign Qual Div: Use this field only when the amount of foreign source income used to calculate the foreign tax credit is different from the amount entered in the Qualified Dividend field on the same line. When this field is blank and taxes paid are entered in the Foreign Tax Paid field, UltraTax CS uses the amount in the Qualified Dividend field as foreign source income for Form 1116 purposes.
• Foreign Cap Gain: Use this field only when the amount of foreign source income used to calculate the foreign tax credit is different from the amount entered in the Total Cap Gain (total capital gains) field on the same line. When this field is blank and taxes paid are entered in the Foreign Tax Paid field, UltraTax CS uses the amount in the Total Cap Gain (total capital gains) field as foreign source income for Form 1116 purposes.
• Foreign Tax Paid: Enter the amount of foreign taxes paid on foreign dividend income. UltraTax CS uses the amount entered here to calculate Form 1116.
• X if Foreign: UltraTax CS marks this field automatically when an amount is entered in the Foreign Ord Div, Foreign Qual Div, Foreign Cap Gain, or Foreign Tax Paid field. When this field is marked, the amount is considered to be foreign and will be transferred to Form 1116 to be included in the calculation of the foreign tax credit. This indicator may also be manually added or removed.

Foreign dividend income:

If you enter foreign data in the Dividend income statement, a 1116 screen automatically completes with all information necessary to calculate Form 1116. You can edit or add information to the 1116 screen.

The following table lists the fields in the 1116 screen that complete automatically, as well as the subsequent treatment of the information on Form 1116.

• FATCA: Enter X if the FATCA box is marked in the source document, indicating that the payer has satisfied its FATCA filing requirement via issuance of the source document. When you mark this field, an informational diagnostic reminds you that the taxpayer may also have a separate FATCA requirement to file Form 8938 and/or FINCEN Form 114. Review Form 8938 and/or FinCEN Form 114 filing instructions to determine if any filing requirements apply.

Use the attached statement to record the details of nondividend and liquidating distributions reported on Form 1099-DIV. The amounts entered here are not used in the calculation of the return, but will print with the Client Carryforward Memos and Checklists worksheet. The entries will proforma to the following year for tracking purposes. If it is determined that the distribution amount constitutes a fully or partially taxable event, use the Broker and barter exchange transactions - Proceeds statement in the Broker screen to record the capital gain/loss information. For more information on when a nondividend or liquidating distribution may be taxable, see IRS Publication 550, "Investment Income and Expenses."

Enter X if the foreign income (interest and dividends) and foreign taxes entered above were from a mutual fund or other regulated investment company (RIC). When this field is marked, "RIC" prints on Form 1116, Page 1, line i. Regulated investment income (RIC) does not need to be reported on a country by country basis.

Information in this field is reported on Form 1116 in order to take a credit for foreign taxes paid (unless the taxpayer qualifies for and elects exemption from the foreign tax credit limitation). If the related income was passed through from a mutual fund or other regulated investment company (RIC), the income does not need to be reported on a country-by-country basis. To indicate this, leave these fields blank and mark the Foreign income / taxes from a mutual fund or other regulated investment company (RIC) field above.

Some of the fields within the attached statement are described here.

• 8949 Box: This field is used to determine which unit of Form 8949 will report the transaction or if the transaction is reported directly on Schedule D.
  Notes

  • The 8949 Box code, in conjunction with the Date Acq'd, Date Sold, and Force fields, determines the page on which the transaction will be reported on Form 8949. Boxes A, B, and C are reported on Form 8949, page 1, as short-term transactions. Boxes D, E, and F are reported on Form 8949, page 2, as long-term transactions.
  • UltraTax CS defaults to 3, Box C treatment when this field is blank. To change the default behavior for all clients, choose Setup > 1040 Individual > Other Return Options button. Click the Return Presentation tab and make your selection in the Default for Screen B&D, Schedule for detail, Form 8949 transactions field.
  • Code 4 should only be used for transactions that are reported on Form 1099-B (or substitute) that indicates basis was reported to the IRS and does not report a disallowed wash sale loss in box 5.
  • UltraTax CS defaults to Form 8949 reporting and produces a critical diagnostic when a transaction has an 8949 Box code 4 and any of the following are true:
    • 1099B Errors has data
    • Type contains C for Collectible
    • Adj to G/L has data
  • Code 4 transactions will be combined and the total reported directly on Schedule D lines 1a or 8a depending on the holding period. The IRS does not require detail to be provided for items reported on lines 1a or 8a. Worksheets for lines 1a and 8a print to help you track each transaction. By default, the worksheets print when two or more transactions exist. To change the default amount, enter the desired amount in the Minimum number of transactions to print Sch D, Line 1a/8a worksheets field located in Setup > 1040 Individual > Other Return Options > Return Presentation tab.
• 1099B Errors: This field is used to identify 1099B errors that were reported to the IRS.
  Notes

  • When Code 1 is selected and no other adjustment is applied to the transaction, a "0" (zero) will print in the Form 8949 (g) Amount of adjustment column.
  • Code 4 should not be used in the 8949 Box field when a code is entered in the 1099B Errors field.
  • It is not necessary to enter B or T in either Adj Code column. The applicable adjustment code automatically prints in the Form 8949 (f) Code(s) from instructions column. Use the Adj to Gain (Loss) and Adj Code columns to report any other adjustments that may apply to the transaction. See the Adj Code fieldview for a full list of codes in accordance with the Form 8949 instructions. When more than one adjustment code applies, the codes print in alphabetical order without spaces or commas. 
    

• Type: Use this field to indicate the type of capital asset for which you are entering information. Data entry in this field will automatically print Form 8949 adjustment codes C, S, and Q where applicable as noted below. The codes you can enter in this field are listed in the table that follows and in the fieldview.

  Code	Result
  B	Business Gain or loss is included in Schedule D, the NOL Worksheet as business capital gain or loss, in the income used to limit section 179 expense, and gain or loss is reported on Form 8582.
  C	Collectible Gain or loss is included in Form 8949, Form 4952, and in the NOL Worksheet as nonbusiness capital gain or loss. Gain or loss is also included in the 28% Rate Capital Gain Tax Worksheet. Notes Adjustment code "C" will print in the Form 8949 Column (f) Codes from instructions. If there is no amount entered in the Adj to G/L field, a 0 (zero) will print in Column (g) Amount of Adjustment. Items coded "C" will be taxed at 28% capital gains rates. Therefore, do not combine non-collectible sales with collectible sales when reporting multiple transactions on a single row. The IRS does not allow collectibles to be reported directly on Schedule D, so code 4 should not be used in the 8949 Box field when code C = Collectible is selected in the Type field.
  M	Money market (floating NAV) Use type M to report capital gain/loss determined under the net asset value method (NAV) with respect to shares in a floating-NAV money market fund. Notes Type M items will always be reported on Form 8949 Part I (short- term) with Box C checked, even if you enter long-term dates. Only the Form 8949 description and gain/loss column will be completed, all other columns will remain blank. "(NAV)" appends to the description.
  N	Nonbusiness Gain or loss is included in Form 8949 and in the NOL Worksheet as nonbusiness capital gain or loss.
  S	Section 1244 stock Section 1244 losses transfer to Form 4797, Part II. Section 1244 gains are reported on Form 8949. Notes Adjustment code "S" will print in the Form 8949 Column (f) Codes from instructions when the transaction is a loss. Section 1244 losses will be reported on Form 8949 with an amount equal to the ordinary gain reported on Form 4797. Items coded "S" will be treated as 100% Section 1244 gains on Form 4797. Therefore, do not combine non-Section 1244 transactions with Section 1244 sales when reporting multiple transactions on a single row.
  V	1202 gain 100% excludable Section 1202 provides for an exclusion of 100 percent of the gain on the sale or exchange of qualified small business stock. The section 1202 exclusion applies only to qualified small business stock issued after September 21, 2010, and before January 1, 2014 which was held for more than five years. Enter the amount before exclusion. There is no taxable gain for this exclusion, so these transactions do not affect the 28% Rate Capital Gain Tax Worksheet, Form 4952, or the nonbusiness capital gain in the NOL worksheet. Notes When there is a Sales Price and Cost/Basis entered with a "V" in the Type column, the Adj to G/L updates with the exclusion amount. Adjustment code "Q" will print in the Form 8949 Column (f) Codes from instructions. Do not combine non-Section 1202 sales with other gains subject when reporting multiple transactions on a single row.
  X	1202 gain 50% excludable Section 1202 provides for an exclusion of 50 percent of the gain on the sale or exchange of qualified small business stock. The section 1202 exclusion applies only to qualified small business stock issued after August 10, 1993, and held for more than five years. Enter the amount before exclusion. The amount after exclusion displays in the 28% Rate Capital Gain Tax Worksheet, on Form 4952, and as nonbusiness capital gain in the NOL Worksheet. Notes When there is a Sales Price and Cost/Basis entered with an "X" in the Type Column, the Adj to G/L updates with the exclusion amount. Adjustment code "Q" will print in the Form 8949 Column (f) Codes from instructions. Items coded "X" will be treated as Section 1202 gain subject to 50% exclusion with the taxable amount subject to the 28% capital gains rates and the AMT 7% preference. Therefore, do not combine non-Section 1202 sales with Section 1202 gains subject to 50% exclusion when reporting multiple transactions on a single row.
  Y	1202 gain 75% excludable Section 1202 provides for an exclusion of 75 percent of the gain on the sale or exchange of qualified small business stock. The section 1202 exclusion applies only to qualified small business stock acquired after February 17, 2009, and on or before September 27, 2010, in a qualified business entity and held for more than five years. Enter the amount before exclusion. The amount after exclusion displays in the 28% Rate Capital Gain Tax Worksheet, on Form 4952, and as nonbusiness capital gain in the NOL Worksheet. Notes When there is a Sales Price and Cost/Basis entered with a "Y" in the Type column, the Adj to G/L updates with the exclusion amount. Adjustment code "Q" will print in the Form 8949 Column (f) Codes from instructions. Items coded "Y" will be treated as Section 1202 gain subject to 75% exclusion with the taxable amount subject to the 28% capital gains rates and the AMT 7% preference. Therefore, do not combine non-Section 1202 sales with Section 1202 gains subject to 75% exclusion when reporting multiple transactions on a single row.
  Z	1202 gain 60% excludable Section 1202 provides for an exclusion of 60 percent of the gain on the sale or exchange of qualified small business stock. The section 1202 exclusion applies only to qualified small business stock acquired after December 21, 2000, in a qualified business entity (within an empowerment zone) and held for more than five years. Enter the amount before exclusion. The amount after exclusion displays in the 28% Rate Capital Gain Tax Worksheet, on Form 4952, and as nonbusiness capital gain in the NOL Worksheet. Notes When there is a Sale Price and Cost/Basis entered with an "Y" in the Type column, the Adj to G/L updates with the exclusion amount. Adjustment code "Q" will print in the Form 8949 Column (f) Codes from instructions. Items coded "Z" will be treated as Section 1202 gain subject to 60% exclusion with the taxable amount subject to the 28% capital gains rates and the AMT 7% preference. Therefore, do not combine non-Section 1202 sales with Section 1202 gains subject to 60% exclusion when reporting multiple transactions on a single row.

• Quantity Sold /Stock/Other Symbol / Desc: Use the Quantity Sold, Stock/Other Symbol, and Desc fields to describe the transaction. The fields will be combined into one field on the 8949. Note that "sh" will print after the Quantity Sold, as in the example listed on the Form 8949 (i.e. 100 sh. XYZ Co.). Use any combination of fields to enter the transaction description. For example, use only the Quantity Sold and Stock/Other Symbol fields or simply use the Desc field.
• Date Acq'd / Date Sold: Enter acquired and sold dates in MM/DD/YY format. The following text is also available to print in the date fields on the form:
  • VARIOUS - Enter V
  • INHERIT - Enter I
  • WORTHLSS - Enter W

  Note: To report worthless securities on Form 8949, enter W in the Date Sold field and complete the Cost/Basis field. Form 8949 will print WORTHLSS in the Date Sold field and report the basis as a loss in column f. UltraTax CS defaults to short-term treatment when the Date Sold field is WORTHLSS and the Date acquired field contains a date in the same tax year. You may change the holding period to long-term by using the Force field.

• 1=S, 2=L, 3=28%: This field represents the holding period calculated from the dates entered in the Date Acq'd and Date Sold fields. When the Force field is blank, the data in this field helps to determine where to report the gain or loss on Schedule D. Data in this field cannot be modified. Use the Force field to modify the calculated holding period.

  Note: UltraTax CS defaults to a short-term holding period if it cannot be calculated using the Date Acq'd and Date Sold fields (if, for example, a date field contains "Various").

• Force: UltraTax CS determines long-term or short-term status of an asset based on the dates you enter in the Date Acq'd and Date Sold fields. For assets coded X or Z for section 1202 gain subject to the 50- and 60-percent exclusion, and for assets coded C for Collectibles, UltraTax CS ignores the force code and date fields and uses the 28-percent rate. To change the status of an asset, enter 1 for short-term, 2 for long-term, or 3 for 28% rate in the Force field.

  Note: The data in this field helps to determine where to report the gain or loss on Schedule D and ignore the calculated data in the 1=S, 2=L, 3=28% field. Entering data in the Force field will not change the calculated holding period in the 1=S, 2=L, 3=28% field. When data is entered in the Force field, the data in the 1=S, 2=L, 3=28% field is for informational purposes only.

• Adj to G/L: Use this field to adjust the amounts reported to the IRS on a 1099-B, 1099-S (or substitute statement) is incorrect, to exclude or postpone a capital gain, report a disallowed loss, etc.
  
  

  Notes

  • 8949 Box code 4 (report directly on Schedule D) is not a valid selection when there is an amount entered in the Adj to G/L field.
  • An Adj Code must be entered for every Adj G/L amount.
  • The Gain-Loss column will include the Adj to G/L column to arrive at the taxable gain/-loss amount. Review of the Gain-Loss column prior to entering the adjustment may help to determine the amount and type (positive or negative) of adjustment needed to get to the correct taxable gain/loss
  • Adj to G/L will be automatically updated with the excluded gain for items with a Type = X for 1202 gain 50 percent excludable or Z for 1202 gain 60 percent gain excludable A.
• Adj Code/Adj Code 2: Use these fields to enter the applicable code for the adjustment amount entered in the Adj to G/L field. All adjustment amounts reported on the form are required to have an adjustment code. Note the following 8949 adjustment codes are not available in this view as they are automatically printed on the form via other data entry. Also, note that there are two Adj Code columns to aid in reporting multiple adjustment codes on Form 8949. UltraTax CS uses the entries in each Adj Code column in conjunction with the calculated adjustment codes B, T, H, Q, and S, and reports the codes in alphabetical order (without commas) on Form 8949.
  • B - Enter 2 or 3 in the 1099B Errors field.
  • T - Enter 1 or 3 in the 1099B Errors field.
  • H - Section 121 exclusions calculated on the Sale of Home Worksheets are automatically reported on Form 8949 with Code H. See the Home screen in the Personal Sale folder.
  • Q - Enter X or Q in the Type field.
  • S - Enter S in the Type field.

  Note: S only prints when the transaction is a loss.

  • C - Enter C in the Type field.

  Notes:

  • Multiple codes report in alphabetical order without spaces or commas between codes. The IRS efile allows a maximum of 7 codes to be reported in the Adjustment Column.
  • * Multiple codes - Columns 1099B Errors, Type, Adj Code, and the Home screen (Personal Sale folder) may be used to report multiple codes for a transaction. For example, a Section 1202 gain that is 50% excludable that received a Form 1099-B with an incorrect Basis and Holding period. The following data entry will result in Form 8949 (f) Code B, E, Q, T:
    • 1099B Errors = 3 - 1099-B box 1c and 3 are incorrect (Codes B and T)
    • Type = X - 1202 gain 50% excludable
    • Adj G/L = Amount to be excluded (enter as a negative amount). The Section 1202 adjustment amount automatically populates.
    • Adj Code = E - Selling expenses were not reported on the 1099-B
  • California note for Code W: The California Franchise Tax Board requires a loss subject to the wash sale rules to be reported as a separate item on Schedule D (540). Do not include losses subject to wash sale rules in line items that combine several transactions into one line of data entry.
• Gain-Loss: The gain or loss for the sale automatically calculates based on the sales price, cost / basis, and Adj to G/L entered. Note that you cannot modify this column, as it automatically calculates.

  Note: The Gain -Loss column will calculate before the Adj to G/L is entered, so it may be used to determine the amount and type (positive or negative) of adjustment needed to get to the correct taxable gain/loss.

• AMT Cost If Diff / AMT Adj G/L If Diff: Enter the AMT cost basis and/or the AMT adjustment to gain/loss if differs from the regular tax information. The amount reports on the AMT Form 8949 and AMT Form 8949 Worksheet.

  Notes

  • A zero (0) maybe entered in the AMT Cost If Diff field if applicable.
  • The Gain-Loss column will calculate before the Adj to G/L is entered, so it may be used to determine the amount and type (positive or negative) of adjustment needed to get to the correct taxable gain/loss.
• AMT Gain -Loss: The AMT gain or loss for the sale automatically calculates based on the sales price, cost / basis, and Adj to G/L entered. If the specific AMT fields are blank the regular tax amounts will be used. Note that you cannot modify this column, as it calculates automatically.

  Note: The AMT Gain-Loss column will calculate before the AMT Adj to G/L if Diff is entered, so it may be used to determine the amount and type (positive or negative) of adjustment needed to get to the correct AMT taxable gain/loss.

• Fed W/H: Enter withholding amounts reported on the sales transaction. Federal withholding amounts entered here transfer to Form 1040, Page 2, line 16.
• St W/H: Enter withholding amounts reported on the sales transactions. State withholding amounts entered here transfer to Schedule A, line 5a.

• Form / Unit #: Within the statement, enter the form and unit number related to this activity in the fields provided if this is related to a basis, at- risk, or passive activity.

• State: If you are processing a state return, enter a state postal code for proper state processing. Press F4 from this field to view a list of available state postal codes. See State fields for more information.

• State Use: The codes that are available in this field are specific to the state postal code entered in the State field. If state use codes are not applicable to the entered state, state use codes will not be available in most instances (see the following note for a description of exceptions). Enter a code as applicable for processing the 1040 state return.

  Notes

  • States marked with brackets ([ ]) denote state use codes that are available when that state's return is attached to the open client, even when that particular state postal code is not entered in the corresponding State field. For example, Code 2 – Out of State Property [MI].
  • Wisconsin users only: Enter state use code 14 for any net capital gain from the sale of qualified small business stock acquired, not by gift, on or after January 1, 1986, and held for at least five years. This will exclude the transaction from Schedule WD.

Enter an explanation for the basis reported on Form 8949, if other than the actual cost. The explanation in this statement prints as a required statement and is included in the electronic file with Form 8949.

Use the statement attached to this field to enter section 1256 contracts marked to market information. Enter only net gains and losses that are attributable to a section 1256 position in this statement. Enter net gains or losses that are attributable to a net non-section 1256 position in the Schedule for detail statement located on the B&D screen in the Income folder. Be sure to identify the election in the description column. The attached statement includes several different fields:

• Description: Enter a description, which identifies an account or contract transaction. When Form 1099-B or similar statement has been issued, include the text "Form 1099-B" and the name of the broker in this field. Identify all other transactions separately.
• -Loss/Gain Entire Yr: Enter the amount of the gain or loss for the entire year. Negative amounts will be reported in the loss column of Form 6781, Part I. Enter the amount without regard to any Form 1099-B adjustment that may be required.
• Explanation 1099-B Adjust / 1099-B Adjust: Use the 1099-B adjustment fields to enter positive or negative adjustments that may be required when the client's Form 1099-B includes a straddle or hedging transaction as defined in section 1256(e)(2). The explanation will be reported in a statement listing each adjustment and the total of all adjustments will be reported on Part I of the form.
• Tot 1256 Carryback: If you want to elect to carryback a section 1256 loss to a previous year, enter the amount of the loss in this field as a positive number. The total of the amounts to carryback transfers to Part I, if applicable.
• State: Enter the state postal code for the item entered. See State fields for more information.
• Foreign: Enter the code that corresponds to the appropriate election if the contract is a foreign currency contract, or use the fieldview to make your selection.

Contracts with data in this field will be included on the list of foreign currency contracts to be submitted with the return.

Amounts in this field are used only for specific state returns.

Enter any margin interest from the consolidated broker statement in this field. UltraTax CS reports the amount on Form 4952, line 1, as applicable