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.
