Page 230 - Individual Forms & Instructions Guide

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• Section 1250 gain figured as if • Gain attributable to real property, Rollover of Gain From Stock
section 1250 applied to all depreciation or an intangible asset, that isn't an inte- Sold to ESOPs or Certain
rather than the additional depreciation. gral part of a renewal community busi- Cooperatives
• Gain attributable to real property, ness.
or an intangible asset, that isn't an inte- • Gain from a related-party transac- You can postpone all or part of any gain
gral part of a DC Zone business. tion. See Sales and Exchanges Between from the sale of qualified securities, held
• Gain from a related-party transac- Related Persons in chapter 2 of Pub. for at least 3 years, to an employee stock
tion. See Sales and Exchanges Between 544. ownership plan (ESOP) or eligible
Related Persons in chapter 2 of Pub. How to report. Report the sale or ex- worker-owned cooperative, if you buy
544. change of qualified community stock or qualified replacement property. See Pub.
How to report. Report the sale or ex- a qualified community partnership inter- 550. Also, see the instructions for Form
change of DC Zone business stock or a est on Form 8949, Part II, with the ap- 8949, columns (f), (g), and (h).
DC Zone partnership interest on Form propriate box checked, as you would if
8949, Part II, as you would if you you weren't taking the exclusion. Then
weren't taking the exclusion. Then enter enter “X” in column (f) and enter the Specific
“X” in column (f). Enter the amount of amount of the exclusion as a negative Instructions
the exclusion as a negative number in number in column (g). Put it in paren-
column (g). Put it in parentheses to show theses to show it is negative. See the in- Rounding Off to Whole
it is negative. See the instructions for structions for Form 8949, columns (f),
Form 8949, columns (f), (g), and (h). (g), and (h). Complete all remaining col- Dollars
Complete all remaining columns. umns. You can round off cents to whole dollars
Report the sale or exchange of DC Report the sale or exchange of quali- on your Schedule D. If you do round to
Zone business property on Form 4797. fied community business property on whole dollars, you must round all
See the Form 4797 instructions for de- Form 4797. See the Form 4797 instruc- amounts. To round, drop amounts under
tails. tions for details. 50 cents and increase amounts from 50
Exclusion of Gain From Deferral of Gain Invested in to 99 cents to the next dollar. For exam-
ple, $1.39 becomes $1 and $2.50 be-
Qualified Community Assets a QOF comes $3.
If you sold or exchanged a qualified If you have an eligible gain, you can in-
community asset that you acquired after vest that gain in a QOF and elect to de- If you have to add two or more
2001 and before 2010 and held for more fer part or all of the gain that you would amounts to figure the amount to enter on
than 5 years, you may be able to exclude otherwise include in income until you a line, include cents when adding the
the qualified capital gain that you would sell or exchange the investment in the amounts and round off only the total.
otherwise include in income. The exclu- QOF or December 31, 2026, whichever
sion applies to an interest in, or property is earlier. If you make the election, you Disposal of QOF investment. If you
of, certain renewal community business- only include gain to the extent, if any, disposed of any investment in a QOF
es. the amount of realized gain is more than during the tax year, check the box on
page 1 of Schedule D and see the In-
Qualified community asset. A quali- the aggregate amount invested in a QOF structions for Form 8949 for additional
fied community asset is any of the fol- during the 180-day period beginning on reporting requirements. You must also
lowing. the date the gain was realized. You may complete Part III of Form 8997. See the
• Qualified community stock. also be able to permanently exclude the instructions for Form 8997 for details.
• Qualified community partnership gain from the sale or exchange of any
interest. investment in a QOF if the investment is Lines 1a and 8a—
• Qualified community business held for at least 10 years. Transactions Not Reported
property. QOF. A QOF is any investment vehicle on Form 8949
Qualified capital gain. Qualified capi- that is organized as either a corporation
tal gain is any gain recognized on the or partnership for the purpose of invest- You can report on line 1a (for short-term
sale or exchange of a qualified commun- ing in eligible property that is located in transactions) or line 8a (for long-term
ity asset but doesn't include any of the a qualified opportunity zone. transactions) the aggregate totals from
following. How to report. Report the eligible gain any transactions (except sales of collec-
• Gain attributable to periods after as you normally would on Schedule D. tibles) for which:
December 31, 2014. See the Form 8949 instructions for how • You received a Form 1099-B (or
• Gain treated as ordinary income to report the deferral. See the Form 8997 substitute statement) that shows basis
under section 1245. instructions for additional reporting in- was reported to the IRS and doesn't
• Section 1250 gain figured as if structions. show any adjustments in box 1f or 1g;
section 1250 applied to all depreciation • The Ordinary box in box 2 isn’t
rather than the additional depreciation. checked;
• The QOF box in box 3 isn’t
checked;

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