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04/19/2013 at 09:23AM PDT
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Fredcl
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03/29/11 5:08pm PDT

15b unrecaptured 1250 gain adjustment

S Corp K-1 input field 15b unrecaptured sec 1250 gain adjustment is used for what?

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03/29/11 5:46pm PDT

Indiividuals to use when they calculate their tax using the Qualified Dividends and Capital Gain Tax worksheet

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my understanding is that unrecaptured 1250 gain is reported in two places on the 1120S K-1. The amount in field 8c is the difference between the original cost and the remaining regular basis, i.e. unrecaptured 1250 gain. The instructions for 1102S, Schedule K-1, say there should be a statement separating the 1250 gain from the sale business assets, sale of a partnership interest, and 1250 gain from an estate or trust K-1. The latter two don't apply in my clients case, so there is no statement. The amount in field 15b is the AMT gain less the regular gain, the adjusted gain. There is also supposed to be  a statement for field 15b that shows a breakdown of the adjusted gain relating to short term capital gain, long term capital gain, and sect. 1231 gain. The portion of the long term capital adjusted gain that relates to collectibles is to be shown and  the portion of the adjustment of 1231 gains that is unrecaptured 1250 gains is also to be shown. How do you calculate the portion of the adjustment of 1231 gains that is related to unrecaptured 1250 gains? Is this amount a double counting of part of the amount in 8c?

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