New (tax) year, new help!

Fixed Assets and UltraTax CS 2023 help is now on Help and Support. We're still moving articles, but you can find most content for the 2023 tax year there. Continue using the Help & How-To Center for tax years 2022 and older.

In general, disqualifying income is investment income such as taxable and tax-exempt interest, dividends, child's interest and dividend income reported on the return, child's tax-exempt interest reported on Form 8814, line 1b, net rental and royalty income, net capital gain income, other portfolio income, and net passive income.

Gain that is treated as long-term capital gain under section 1231 (a)(1) of IRC is not disqualifying investment income. Section 1245, 1250, 1252, 1254 and 1255 gain is considered ordinary gain and therefore is not included in the calculation of income for purposes of the EIC.

The disqualifying investment income limit for 2022 is $3,400. UltraTax CS automatically calculates this amount based on information entered elsewhere in the return and prints a supporting worksheet. You can force this amount in the Disqualifying investment income (Force) field in Screen EIC.

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