club_cafe: Re: 1099 question (unrecaptured sec. 1250 gain)
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club_cafe: Re: 1099 question (unrecaptured sec. 1250 gain) Ok. Here's the scoop for 2003...
Entries from box 2d of Form1099-DIV are already included in box 2a. The amount reported in box 2d should be allocated to the partners and entered on line 25 of Schedule K-1. There is no corresponding entry for the total on Schedule K. I believe you will have to do this on your own as I do not think bivio's tax preparation program will handle it.
Entries from box 2c of Form 1099-DIV are already included in box 2a. The amount reported in box 2c should be allocated to the partners and entered on line 25 of Schedule K-1. There is no corresponding entry for the total on Schedule K. I haven't checked, so I don't know if bivio's tax preparation program will do this automatically.
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(2) (along with any other long term capital gains from direct stock sales) and should (I don't know if it does) place the qualified 5 year capital gain on line 25 (again, along with any other qualified 5 year capital gains from direct stock sales). I haven't actually worked this through using the program, so there may be an error or two. If you don't get the results you expect, please come back, explain what you found, and we'll try to figure it out.
Ira Smilovitz
In a message dated 2/12/2004 9:06:16 PM Eastern Standard Time, damemary@bivio.com writes:
I found this message very helpful last year when filing our |
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