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Interest and dividends

Dispose of interests in partnerships or S corporations when section 1411(c)(4)(A) applies

For the disposition of an active interest in a partnership or S corporation as described in section 1411(c)(4)(A), the gain or loss is taken into account for net investment income only to the extent of the net gain that would be taken into account if all the property of the partnership or S corporation was sold for fair market value immediately before the disposition of the interest, per Regulations section 1.1411-7.

Enter a current-year disposition of a partnership interest or S corporation stock

  1. Select the
    Income
     folder, then the
    B&D
     tab.
  2. Open the
    Schedule for detail
     statement window.
  3. Select
    Business
     in the Type column, then an option in the Form column and the Unit column.

Enter a current-year installment sale

  1. Select the
    K1
     folder, then the
    K1Sale
     screen.

Enter a disposition of interest in the partnership or S corporation

  1. Select the
    Taxes
     folder, then the
    ACA Tax
     tab.
  2. Enter the disposition details in the
    Adjustment from disposition of partnership interest or S corporation stock
     statement window.
  3. UltraTax CS includes this information in the statement for Form 8960. The gain or loss displays as an excluded item in the Form 8960 – Net Investment Income Worksheet 1, Form 8960, Line 5b, Net gain or loss from disposition of property not subject to net investment income tax. It's also included as a disposition of interest.
  4. UltraTax CS then creates the Form 8960, Line 5c, Adjustment from disposition of partnership interest or S corporation stock worksheet on Form 8960 – Net Investment Income Worksheet 2, and enters the adjustment amount on Form 8960 line 5c.
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