Calculation of Form 4952, line 4a - Gross income from property held for investment

UltraTax CS includes the following as gross income from property held for investment:
  • Interest income entered in the B&D, Broker, K1-2, and K1T screens
  • Dividends entered in the B&D, Broker, K1-2, and K1T screens
  • Royalties entered in the Rent screen with code
    6
    activity type, 1099M screen, box 2, and K1-2 screen
  • Other portfolio income entered in the K1-2 and K1T screens
  • Rental of substantially non-depreciable property
  • Net passive income of a publicly traded partnership (PTP)
  • Income from an activity in which taxpayer did not materially participate and is not a passive activity (C and F screens)
  • Child's income reported on the parent's return (8814 screen)
  • Net passive income recharacterized as non-passive income from land rentals (Schedule E or Form 4835)
  • Net passive income recharacterized as non-passive income, as indicated by code
    1
    ,
    2
    , or
    5
    in the
    Recharacterization of passive income
    field in the K1-7 screen or K1T-2 screen
  • Cancellation of debt income classified as investment income on the 1099C screen

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