Form 2439 is used by Regulated Investment Companies(RICs) and Real Estate Investment Trusts (REITs) to report undistributed long-term capital gains.
Tax Reporting
Each box of the 2439 gets reported on a different form in the account. For directions for each box, see below:
Box 1a is used to report the total undistributed long-term capital gain from your regulated investment company (RIC) or real estate investment trust (REIT).
Report the total amount as a long-term capital gain on Schedule D. To do this, go to:
- Federal Section
- Income - Select my forms
- Investments
- Stocks, Mutual Funds, Cryptocurrency, Collectibles, etc.
- Enter Sales one by one (Only in Classic and Premium accounts)
- Enter Form 2439 as the description
- Enter as a Long term capital gain
Box 1b is the unrecaptured section 1250 gain. Individual filers report this amount on line 11 of the Unrecaptured Section 1250 Gain Worksheet in the Schedule D (Form 1040) instructions for 2021 or the applicable line of the worksheet in the instructions for the current year.
Box 1c is the portion of the amount in box 1a attributable to a section 1202 gain (sale of qualified small business stock). Individual filers, see Exclusion of Gain on Qualified Small Business (QSB) Stock in the Schedule D (Form 1040) instructions.
Box 1d is the amount is the collectibles gain (28% rate gain) portion of the amount in box 1a. Individual filers enter this amount on line 4 of the 28% Rate Gain Worksheet in the Schedule D (Form 1040)
instructions for 2021 or the applicable line of the worksheet in the instructions for the current year.
Box 2 is the amount of tax paid by the RIC or REIT on the undistributed long-term capital gains shown in box 1a. You can apply for a refund or credit of this tax as follows, line 13a of Schedule 3 (Form 1040) of the 2021 form or the applicable line on the current year form, S corporations and partnerships. See the Specific Instructions for Schedules K and K-1, Part III (Forms 1120-S and 1065) for details on reporting each item to the shareholders and partners.
Program Entry
- Federal Section
- Payments & Estimates
- Other Payments or Refundable Credits
- Shareholders Undistributed Long-Term Capital Gains