Form 8582 Line 4 GAIN to where?

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  • KarenMM
    Member
    • Mar 2006
    • 60

    #1

    Form 8582 Line 4 GAIN to where?

    I have a client who has NON- PTP k-1s showing an overall GAIN on worksheet 3, form 8582. The income is from a partnership K-1 using line 11F, described as IRC section 1296 ordinary income. My software is correctly entering it onto the form 8582, worksheet 3, but I think it should go to the 4797, part 2 from there, and it is not. Other than appearing on the 8582, I cannot see that my software did anything with it.
    Can anyone verify that it SHOULD go onto the 4797 as ordinary income? If not, where?
  • kathyc2
    Senior Member
    • Feb 2015
    • 1947

    #2
    I believe 1256 income goes to 6781 not 4797.

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    • New York Enrolled Agent
      Senior Member
      • Nov 2006
      • 1531

      #3
      Originally posted by kathyc2
      I believe 1256 income goes to 6781 not 4797.
      There are 2 different code sections being discussed here. 1256 not equal to 1296.

      Comment

      • kathyc2
        Senior Member
        • Feb 2015
        • 1947

        #4
        Originally posted by New York Enrolled Agent
        There are 2 different code sections being discussed here. 1256 not equal to 1296.
        Oops! Coffee maker broke, I'll blame it on lack of caffeine.

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