Example: Entering unrecaptured Section 1250 gains

Alerts and notices
Leave feedback

Internal Employees: Submit feedback

Contact information (optional):

Leave this blank:

Please tell us how we can make this information more helpful.


Characters left:

Follow the example in this topic 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. 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 is not 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.

Related topic: Entering data in a plan - overview of related information

Share This