Page 229 - Individual Forms & Instructions Guide

22:40 - 25-Jul-2022
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The type and rule above prints on all proofs including departmental reproduction proofs. MUST be removed before printing.
tive number in column (g). Put it in pa- isn't traded on an established securities sent to you by the partnership; also, see
rentheses to show it is negative. See the market is generally treated as an install- Regulations section 1.1045-1.
instructions for Form 8949, columns (f), ment sale and is reported on Form 6252. You must recognize gain to the ex-
(g), and (h). Complete all remaining col- Report the long-term gain from Form tent the sale proceeds are more than the
umns. If you are completing line 18 of 6252 on Schedule D, line 11. Figure the cost of the replacement stock. Reduce
Schedule D, enter as a positive number allowable section 1202 exclusion for the the basis of the replacement stock by
the amount of your allowable exclusion year by multiplying the total amount of any postponed gain.
on line 2 of the 28% Rate Gain Work- the exclusion by a fraction, the numera-
sheet; if you excluded 60% of the gain, tor of which is the amount of eligible You must make the election no later
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enter /3 of the exclusion; if you exclu- gain to be recognized for the tax year than the due date (including extensions)
ded 75% of the gain, enter /3 of the ex- and the denominator of which is the to- for filing your tax return for the tax year
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clusion; if you excluded 100% of the tal amount of eligible gain. In column in which the QSB stock was sold. If
gain, don't enter an amount. (a) of Form 8949, Part II, enter the name your original return was filed on time,
Gain from Form 1099-DIV. If you re- of the corporation whose stock was sold. you can make the election on an amen-
ceived a Form 1099-DIV with a gain in In column (f), enter “Q,” and in column ded return filed no later than 6 months
box 2c, part or all of that gain (which is (g), enter the amount of the allowable after the due date of your return (exclud-
also included in box 2a) may be eligible exclusion for the year as a negative ing extensions). Enter “Filed pursuant to
for the section 1202 exclusion. Report number. See the instructions for Form section 301.9100-2” at the top of the
the total gain (box 2a) on Schedule D, 8949, columns (f), (g), and (h). If you amended return.
line 13. In column (a) of Form 8949, are completing line 18 of Schedule D, To make the election, report the sale
Part II, enter the name of the corporation enter as a positive number the amount of in Part I or Part II (depending on how
whose stock was sold. In column (f), en- your allowable exclusion for the year on long you, or the pass-through entity, if
ter “Q,” and in column (g), enter the line 2 of the 28% Rate Gain Worksheet; applicable, owned the stock) of Form
amount of the excluded gain as a nega- if you excluded 60% of the gain, enter 8949 as you would if you weren't mak-
tive number. See the instructions for 2 /3 of the allowable exclusion for the ing the election. Then enter “R” in col-
Form 8949, columns (f), (g), and (h). If year; if you excluded 75% of the gain, umn (f). Enter the amount of the post-
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you are completing line 18 of Sched- enter /3 of the allowable exclusion for poned gain as a negative number in col-
ule D, enter as a positive number the the year; if you excluded 100% of the umn (g). Put it in parentheses to show it
amount of your allowable exclusion on gain, don't enter an amount. is negative. See the instructions for
line 2 of the 28% Rate Gain Worksheet; Alternative minimum tax. If you qual- Form 8949, columns (f), (g), and (h).
if you excluded 60% of the gain, enter ify for the 50%, 60%, or 75% exclusion, Complete all remaining columns.
2 /3 of the exclusion; if you excluded enter 7% of your allowable exclusion for
75% of the gain, enter /3 of the exclu- the year on line 13 of Form 6251. If you Exclusion of Gain From DC
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sion; if you excluded 100% of the gain, qualify for the 100% exclusion, leave Zone Assets
don't enter an amount. line 13 of Form 6251 blank. If you sold or exchanged a District of
Gain from Form 2439. If you received Rollover of Gain From QSB Columbia Enterprise Zone (DC Zone)
a Form 2439 with a gain in box 1c, part Stock asset that you acquired after 1997 and
or all of that gain (which is also included before 2012 and held for more than 5
in box 1a) may be eligible for the sec- If you sold QSB stock (defined earlier) years, you may be able to exclude the
tion 1202 exclusion. Report the total that you held for more than 6 months, amount of qualified capital gain that you
gain (box 1a) on Schedule D, line 11. In you can elect to postpone gain if you would otherwise include in income. The
column (a) of Form 8949, Part II, enter buy other QSB stock during the 60-day exclusion applies to an interest in, or
the name of the corporation whose stock period that began on the date of the sale. property of, certain businesses operating
was sold. In column (f), enter “Q,” and A pass-through entity can also make the in the District of Columbia.
in column (g), enter the amount of the election to postpone gain. The benefit of DC Zone asset. A DC Zone asset is any
excluded gain as a negative number. See the postponed gain applies to your share of the following.
the instructions for Form 8949, columns of the entity's postponed gain if you held
(f), (g), and (h). If you are completing an interest in the entity for the entire pe- • DC Zone business stock.
• DC Zone partnership interest.
line 18 of Schedule D, enter as a posi- riod the entity held the QSB stock. If a
tive number the amount of your allowa- pass-through entity sold QSB stock held • DC Zone business property.
ble exclusion on line 2 of the 28% Rate for more than 6 months and you held an Qualified capital gain. Qualified capi-
Gain Worksheet; if you excluded 60% interest in the entity for the entire period tal gain is any gain recognized on the
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of the gain, enter /3 of the exclusion; if the entity held the stock, you can also sale or exchange of a DC Zone asset that
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you excluded 75% of the gain, enter /3 elect to postpone gain if you, rather than is a capital asset or property used in a
of the exclusion; if you excluded 100% the pass-through entity, buy the replace- trade or business. It doesn't include any
of the gain, don't enter an amount. ment QSB stock within the 60-day peri- of the following gains.
• Gain attributable to periods after
Gain from an installment sale of QSB od. If you were a partner in a partnership December 31, 2016.
stock. If all payments aren't received in that sold or bought QSB stock, see • Gain treated as ordinary income
the year of sale, a sale of QSB stock that box 11 of the Schedule K-1 (Form 1065) under section 1245.

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