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Elect to include net capital gain or qualified dividends in investment income

UltraTax CS automatically determines the amount of net capital gain from the disposition of investment property and the amount of qualified dividends to include as a component of investment income. The program makes the following assumptions in determining the elected amount of net capital gain and qualified dividends included in investment income.
  • The amount of gains and qualified dividends included on line 4g are only calculated to the extent necessary to deduct all investment interest expenses in the current year.
  • The amount on line 4g is 1st attributable to net capital gain from property held for investment (line 4e), and then to qualified dividends (line 4b). To elect to treat the amount on line 4g 1st attributable to qualified dividends, enter
    X
     in the
    Elect qualified dividends before capital gains
     field in the
    4952
     screen.
To elect a different amount of net capital gain from property held for investment or qualified dividends included on line 4g, use the
Enter amount to include in investment income (Force)
 fields in the
4952
 screen. To force all net capital gains and qualified dividends to be taxed at the reduced capital gain and qualified dividend tax rate, thus excluding the amounts from the calculation of the deduction for investment interest expense, enter
0
 in the
Enter amount to include in investment income (Force)
 fields. Alternatively, to suppress the automatic calculation of line 4g altogether, enter
X
 in the
Suppress automatic calculation of line 4g qualified dividend/capital gain election
 field.

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