In Keystone Tax Solutions Pro, the 28% Rate Gain Worksheet and the Unrecaptured Section 1250 Gain Worksheet are produced automatically as needed, but there are amounts that may need to be entered on either worksheet by the preparer. To access the both worksheets in Keystone Tax Solutions Pro, from the Main Menu of the tax return (Form 1040) select:
- Income
- Capital Gain/Loss (Sch D)
- Other
- Adjust 28% Rate/1250 Worksheets
28% Rate Gain Worksheet
If the sum of short-term capital gains or losses plus long-term capital gains or losses is a gain, the 28% Rate Gain Worksheet will be produced if either of the following is true:
- Form 8949 Part II includes a section 1202 exclusion from the eligible gain on QSB stock, or
- Form 8949 Part II includes a collectibles gain or loss, i.e., a long-term gain or a deductible long-term loss from the sale or exchange of a collectible (tangible property such as precious metals, gems, stamps, coins, antiques works of art, etc.) that is a capital asset.
The following items entered in the return will pull to the 28% Rate Gain Worksheet
- Entries in Schedule D with an adjustment code of C
- Entries entered under “Additional Capital Gain Distributions 28% Column” entered via the Schedule D “Other” menu
- 1099-DIV with an amount in Box 2b, Collectibles 28% Gain
- Form 2439, Notice to Shareholder of Undistributed Long-Term Capital Gains, with an amount in Box 1d, Collectibles 28% Gain
Three entries may need to be made by the preparer in this menu:
- Capital Gain Distributions from Form 8824 – enter on this line the total of the collectibles gain or loss from Form 8824. This line also includes additional amounts from these forms:
- Form 4684 Line 4 (only if Form 4684 Line 15 is greater than 0)
- Form 6252
- Form 6781 Part II
- Section 1202 Exclusion 28% Total Amount – enter on this line as a positive number the total of the following amounts:
- Any section 1202 exclusion that is 50% of the gain (reported in Form 8949 Part II column (f) with code Q in column (g)), and
- 2/3rds of any section 1202 exclusion that is 60% of the gain (reported in Form 8949 Part II column (f) with code Q in column (g)), and
- 1/3rd of any section 1202 exclusion that is 75% of the gain (reported in Form 8949 Part II column (f) with code Q in column (g))
- Amount to Adjust 28% Gain Worksheet – if the bottom line of the worksheet is incorrect due to rounding or an unusual error, an adjustment can be entered here. Enter the adjustment as a plus or minus, and it will be netted against the calculated amount. A note will also print on the worksheet indicating the adjustment has been made.
Unrecaptured Section 1250 Gain Worksheet
If the sum of short-term capital gains or losses plus long-term capital gains or losses is a gain, the Unrecaptured Section 1250 Gain Worksheet will be produced if the return contains any of the following:
- Sale or disposition of section 1250 property held for more than 1 year;
- Installment payments for section 1250 property held for more than 1 year for which the gain is being reported on the installment method;
- Schedule K-1 that shows “unrecaptured section 1250 gain”;
- Form 1099-DIV or Form 2439 from a REIT or RIC (including a mutual fund) that reports “unrecaptured section 1250 gain”;
- A long-term capital gain from the sale or exchange of an interest in a partnership that owned section 1250 property.
Two entries may need to be made by the preparer in this menu:
Sale of 1250 Property Not Reported on 4797 P1 – enter on this line the total of any unrecaptured section 1250 gain from sales or dispositions (including installment sales) of section 1250 property held more than 1 year for which there is not an entry in Form 4797 Part I for the year of sale. See the Schedule D instructions for Line 12 for how to calculate any entry here.
Adjust Section 1250 Amounts – if the bottom line of the worksheet is incorrect due to rounding or an unusual error, an adjustment can be entered here. Enter the adjustment as a plus or minus, and it will be netted against the calculated amount. A note will also print on the worksheet indicating the adjustment has been made.
Note: This is a guide to entering information on the 28% Rate Gain Worksheet and the Unrecaptured Section 1250 Gain Worksheet in the Keystone Tax Solutions Pro program. This is not intended as tax advice.
Additional Information: