Where does the number come from on line 4a form 4952

[Critter · Accepted solution]

Line 4a Gross income from property held for investment includes income, unless derived in the ordinary course of a trade or business, from interest, ordinary dividends (except Alaska Permanent Fund dividends), annuities, and royalties. Include investment income reported to you on Schedule K-1 from a partnership or an S corporation. Also include net investment income from an estate or a trust. Also include on line 4a (or 4d, if applicable) net passive income from a passive activity of a publicly traded partnership (as defined in section 469(k)(2)). See Regulations sections 1.469-10 and 1.7704-1 (including the transition rule of section 1.7704-1(l)), for details. Net income from certain passive activities, such as rental of substantially nondepreciable property, may have to be recharacterized and included on line 4a. For details, see Pub. 925, Passive Activity and At-Risk Rules, or Regulations section 1.469-2(f)(10). If you are filing Form 8814, Parents’ Election To Report Child’s Interest and Dividends, part or all of your child’s income may be included on line 4a. See the instructions for Form 8814 for details.

[mike_zarlengo]

thank you!

[Indianhead2356]

Why does TT pick up sales of stock as it says excluding any net gain from the disposition of property held for investment)?  I thought in reading directions it should only pick up the LTCG if the person filing was going to pay the regular tax rate and not the CG tax rate.  Can you help with this?