Section 897 Capital Gain

[RWG1950]

Included with the customer's tax materials was a Franklin Templeton 1099-Div that includes an amount in the sec 897 capital gain column.
Haven't seen this before. Couldn't find anything on sec 897 capital gain at the IRS site. Couldn't see any references to sec 897 on "D".
Some internet sites seem to refer to this as ordinary income - although it's shown as capital gain.
Can anyone explain where this goes on the return.
Thanks for comments.

[kathyc2]

The instructions for 1099div discusses them. https://www.irs.gov/instructions/i10...blink100044605

[kathyc2]

On ProSeries on the additional dividend information sheet there is a place to enter 897 ordinary dividends and 897 capital gains.

[RWG1950]

Kathy : Thanks for your reply.
In Taxwise, the dividend worksheet does not have a place to enter section 897 capital gains.
The IRS site instructions are very brief and about clear as mud to me.
They do include this : "NOTE only Ric's and Reit's (Reit's in my case) should complete boxes 2e & 2f. These boxes do not need to be
completed for recipients that are U.S. individuals".
So I'm still unable to determine how the $60 in section 897 capital gain on the 1099-Div should be handled on the return.
$60 is not a big deal on a $300-K return. I'm tempted to ignore it, but I'll likely see this again on another return soon.

[Lion]

What software do you use? Call your software company support.

[Rapid Robert]

The 897 amounts are sub totals of the total ordinary dividends and/or capital gains. If your recipient is a U.S. taxpayer they can ignore it (it's already included in the totals reported in Boxes 1a and 2a).

You can read a little more about this in Pub 515 (search "897"), it also has to do with something called "branch profits tax" which you can also read about by searching the internet.

[RWG1950]

Thanks Robert