Where do I enter Section 897 Capital Gains reported on my 1099-DIV box 2f?

[Critter-3 · Accepted solution]

You can ignore it if you are a US citizen  ... 

 

Box 2f. Section 897 Capital Gain

Enter any amount included in box 2a that is section 897 gain from dispositions of USRPI. See Section 897 gain, earlier.

Note.

 

Only RICs and REITs should complete boxes 2e and 2f. Boxes 2e and 2f do not need to be completed for recipients that are U.S. individuals.

[blasterj]

They are part of the 2A capital games so how do I ignore them, 2022 taex

[DianeW777]

It depends. If you are a United States Citizen you do not need to complete that box.

The IRS Instructions for Form 1099-DIV show the following information (page 3).

'Section 897 gain. If a regulated investment company (RIC) described in section 897(h)(4) (A)(ii) or a real estate investment trust (REIT) disposes of a United States Real Property Interest (USRPI) at a gain, any distributions made to the extent attributable to such gain shall be treated as gain recognized by the recipient from the disposition of a USRPI (that is, the look-through rule).

If any part of the ordinary dividend reported in box 1a or capital gain distributions reported in box 2a is attributable to section 897 gains, report that gain in box 2e and box 2f, respectively. See section 897 for the definition of USRPI and the exceptions to the look-through rule.

Note. Only RICs and (REITs) should complete boxes 2e and 2f. Boxes 2e and 2f do not need to be completed for recipients that are U.S. individuals.

@blasterj 

[blasterj]

Thank you. 2f is new to me this year.   If all the capital gains in 2a are characterized as 2f, do I still have to pay tax on that capital gain if 2f does not apply to US citizens?  Why did this line get filled in for US citizens?

[DianeW777]

it can be confusing however any amount in Box 2a is reportable on your tax return.  I doubt if the financial organizations make a differentiation separating US citizens and aliens when trying to complete their obligations for Box 2f.

It represents the portion of capital gain that is from dispositions of US real property investment holdings. For that reason they are seeking to have all aliens report their capital gains on the US return.  The information about US Code Section 897 can be reviewed by clicking the link placed here for you.

@blasterj