Need to verify reporting of Sec 1231 & 1250 gain from Sub S for the IL-1120-ST. Tax program put Sec 1231 gain from line 9 of Sch K Form 1120S to line 4 of the IL-1120-ST as portfolio income or loss. IL corp sold some land & a building that were used in the operations of the business. Instructions for the form and line items do not exactly match the federal Sch K but it seems the effect is to tax all of the corp income (including Sec 1231, SEc 1250,ect.) at the replacement tax rate of 1.50%. Flow thru from fed K-1 to shareholder would also result in these gains taxed to the shareholder on his IL1040. Is this correct?
I appreciate your reply. Thanks
I appreciate your reply. Thanks