club_cafe: 1099 question (unrecaptured sec. 1250 gain)
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club_cafe: 1099 question (unrecaptured sec. 1250 gain) None of the "below". Entries from box 2d of Form 1099-DIV are already included in box 2a. The amount reported in box 2d should be entered on line 25 of Schedule K/K-1. I believe you will have to do this on your own as I do not think bivio's tax preparation program will handle it. Note: If you have an entry in box 2c (5year qualified gain), you will have to subtract that amount from the amount in box 2a to get the correct tax treatment. This may create a situation where the box 2a number is negative. In a nutshell, here's what you may have to do. First, review your accounting entries for dividends during the year from the REIT. If you've been entering them as "dividends" all along, you will have to reclassify some of the dividends as LTCG, 5yr CG, and return of principal. The sum of boxes 1, 2a, and 3 on Form 1099-DIV should equal the total of cash dividends recorded in bivio for the year. To adjust your bivio account to match the 1099-DIV, you will have to subtract the box 2c amount from box 2a to get the LTCG (other than 5yr CG) component. Reclassify this amount from "dividends" to "long term capital gains". Reclassify the box 2c amount from "dividends" to "qualified five year capital gain". When you prepare your tax return using bivio, the program will combine the "long term capital gain" and "qualified 5 year capital gain" and put them on line 4e(1) (along with any other long term capital gains from direct stock sales) and will place the qualified 5 year capital gain on line 4e(3) (again, along with any other qualified 5 year capital gains from direct stock sales). I realize this is long and potentially confusing, so don't hesitate to ask again if you don't understand something. Ira Smilovitz In a message dated 02/04/03 1:08:22 PM Eastern Standard Time, dconlon@bivio.com writes: on line #2 (Capital Gain Distribution) of my 1099 I have Ira - is this something Bivio will be fixing anytime soon? My club had the same problem last year and I posted a similar question. IraS1@aol.com wrote: > None of the "below". Entries from box 2d of Form 1099-DIV are already included in box 2a. The amount reported in box 2d should be entered on line 25 of Schedule K/K-1. I believe you will have to do this on your own as I do not think bivio's tax preparation program will handle it. > > > > Note: If you have an entry in box 2c (5year qualified gain), you will have to subtract that amount from the amount in box 2a to get the correct tax treatment. This may create a situation where the box 2a number is negative. > > > > In a nutshell, here's what you may have to do. First, review your accounting entries for dividends during the year from the REIT. If you've been entering them as "dividends" all along, you will have to reclassify some of the dividends as LTCG, 5yr CG, and return of principal. The sum of boxes 1, 2a, and 3 on Form 1099-DIV should equal the total of cash dividends recorded in bivio for the year. To adjust your bivio account to match the 1099-DIV, you will have to subtract the box 2c amount from box 2a to get the LTCG (other than 5yr CG) component. Reclassify this amount from "dividends" to "long term capital gains". Reclassify the box 2c amount from "dividends" to "qualified five year capital gain". When you prepare your tax return using bivio, the program will combine the "long term capital gain" and "qualified 5 year capital gain" and put them on line 4e(1) (along with any other long term capital gains from direct stock sales) and will place the qualified 5 year capital gain on line 4e(3) (again, along with any other qualified 5 year capital gains from direct stock sales). > > > > I realize this is long and potentially confusing, so don't hesitate to ask again if you don't understand something. > > > > Ira Smilovitz > > > > In a message dated 02/04/03 1:08:22 PM Eastern Standard Time, dconlon@bivio.com writes: > > > > on line #2 (Capital Gain Distribution) of my 1099 I have > > listed an "unrecaptured sec. 1250 gain, how should that be > > entered into bivio? Bivio choices are: > > > > 1. Dividend > > 2. Interest > > 3. Short term Capital gain > > 4. Medium Term Capital Gain > > 5. Long Term Capital gain > > 6. Qualified five year capital gain > > 7. Return of Capital > > 8. Royalty Income > > > > Please help I found this message very helpful last year when filing our club's 2002 taxes. I need to do the same adjusting this year for our REIT investment but need new instructions, as the lines on the 2003 1099 are a little different. Can anyone help, please? M Waydo IraS1@aol.com wrote: > None of the "below". Entries from box 2d of Form 1099-DIV are already included in box 2a. The amount reported in box 2d should be entered on line 25 of Schedule K/K-1. I believe you will have to do this on your own as I do not think bivio's tax preparation program will handle it. > > > > Note: If you have an entry in box 2c (5year qualified gain), you will have to subtract that amount from the amount in box 2a to get the correct tax treatment. This may create a situation where the box 2a number is negative. > > > > In a nutshell, here's what you may have to do. First, review your accounting entries for dividends during the year from the REIT. If you've been entering them as "dividends" all along, you will have to reclassify some of the dividends as LTCG, 5yr CG, and return of principal. The sum of boxes 1, 2a, and 3 on Form 1099-DIV should equal the total of cash dividends recorded in bivio for the year. To adjust your bivio account to match the 1099-DIV, you will have to subtract the box 2c amount from box 2a to get the LTCG (other than 5yr CG) component. Reclassify this amount from "dividends" to "long term capital gains". Reclassify the box 2c amount from "dividends" to "qualified five year capital gain". When you prepare your tax return using bivio, the program will combine the "long term capital gain" and "qualified 5 year capital gain" and put them on line 4e(1) (along with any other long term capital gains from direct stock sales) and will place the qualified 5 year capital gain on line 4e(3) (again, along with any other qualified 5 year capital gains from direct stock sales). > > > > I realize this is long and potentially confusing, so don't hesitate to ask again if you don't understand something. > > > > Ira Smilovitz > > > > In a message dated 02/04/03 1:08:22 PM Eastern Standard Time, dconlon@bivio.com writes: > > > > on line #2 (Capital Gain Distribution) of my 1099 I have > > listed an "unrecaptured sec. 1250 gain, how should that be > > entered into bivio? Bivio choices are: > > > > 1. Dividend > > 2. Interest > > 3. Short term Capital gain > > 4. Medium Term Capital Gain > > 5. Long Term Capital gain > > 6. Qualified five year capital gain > > 7. Return of Capital > > 8. Royalty Income > > > > Please help |
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