To enter a capital gain distribution, go to Line 5a of Schedule B and link (F9) to the Dividend Income worksheet. Enter the Capital Gain Distribution information here, along with all dividend income. The program will carry this information throughout the entire return.
The total distribution amount is transferred to Schedule D and Form 1040. Any 1250 or 5-year gains are part of the total capital gain and are included in the capital gain. If these are entered, they will go to Schedule D, page 2, as needed.
Do not enter capital gain distributions directly on Line 13 of Form 1040, or the IRS will reject the return. Always enter the capital gain distributions on the Schedule B Dividend worksheet. If Schedule D is not required, UltimateTax will calculate this accordingly.
This information applies to all years of the UltimateTax software.
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