Question

how are capital gains on form 1120s taxes?

Answer 1

Answer:-

Corporations that elect to be S corporations use this schedule to report:

• capital gains and losses,
• sales or exchanges of capital assets, and
• gains on distributions to shareholders of appreciated capital assets.

Short-Term Capital Gains and Losses—Generally Assets Held One Year or Less

1a. Totals for all short-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 1b

1b. Totals for all transactions reported on Form(s) 8949 with Box A checked

1. Totals for all transactions reported on Form(s) 8949 with Box B checked
2. Totals for all transactions reported on Form(s) 8949 with Box C checked
3. Short-term capital gain from installment sales from Form 6252, line 26 or 37
4. Short-term capital gain or (loss) from like-kind exchanges from Form 8824
5. Tax on short-term capital gain included on line 23 below
6. Net short-term capital gain or (loss). Combine lines 1a through 6 in column (h). Enter here and on Form 1120-S, Schedule K, line 7 or 10

Long-Term Capital Gains and Losses—Generally Assets Held More Than One Year

8a.Totals for all long-term transactions reported on Form 1099-B for which basis was reported to the IRS and for which you have no adjustments (see instructions). However, if you choose to report all these transactions on Form 8949, leave this line blank and go to line 8b

8b. Totals for all transactions reported on Form(s) 8949 with Box D checked

1. Totals for all transactions reported on Form(s) 8949 with Box E checked
2. Totals for all transactions reported on Form(s) 8949 with Box F checked
3. Long-term capital gain from installment sales from Form 6252, line 26 or 37
4. Long-term capital gain or (loss) from like-kind exchanges from Form 8824
5. Capital gain distributions (see instructions)
6. Tax on long-term capital gain included on line 23 below
7. Net long-term capital gain or (loss). Combine lines 8a through 14 in column (h). Enter here and on Form 1120-S, Schedule K, line 8a or 10
8. Excess of recognized built-in gains over recognized built-in losses (attach computation statement)
9. Taxable income (attach computation statement)
10. Net recognized built-in gain. Enter the smallest of line 16, line 17, or line 8 of Schedule B
11. Section 1374(b)(2) deduction
12. Subtract line 19 from line 18. If zero or less, enter -0- here and on line 23
13. Enter 21% of line 20
14. Section 1374(b)(3) business credit and minimum tax credit carryforwards from C corporation years 2
15. Tax. Subtract line 22 from line 21 (if zero or less, enter -0-). Enter here and on Form 1120-S, page 1, line 22b