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In 1040 form, where shall I report my "Total Capital Gain Distributions" reported by 1099-DIV?

  1. It is not capital gain/loss, isn't it?
  2. Instruction of 1040 says:

    Instead, they are included on Form 1099-DIV as ordinary dividends. Enter on Schedule D, line 13, the to- tal capital gain distributions paid to you during the year, regardless of how long you held your investment. This amount is shown in box 2a of Form 1099-DIV.

    So shall I include it on line 9a of 1040 form, as well as include it in schedule D?

Thanks!

  • To be clear, the excerpt from the instructions that you included in your question is precisely not for capital gain distributions. The preceding line of the instructions is important: "Distributions of net realized short-term capital gains are not treated as capital gains. Instead, they are included ..." So, only the income not treated as capital gains is reported in box 2a of Form 1099-DIV and goes on line 9a of Form 1040 (vis-a-vis Form 1040 Sched B); the capital gains distributions are handled as explained by @NL7 below. – dg99 Apr 21 '14 at 22:58
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  1. Yes, it counts as capital gain.
  2. No, do not put it on line 9a of the full Form 1040. It goes on Schedule D then to line 13 of the Form 1040.

The instructions to Form 1099-DIV explain that they are included in your capital gain distributions on Line 13:

Box 2a. Shows total capital gain distributions from a regulated investment company or real estate investment trust. Report the amounts shown in box 2a on Schedule D (Form 1040), line 13. But, if no amount is shown in boxes 2c–2d and your only capital gains and losses are capital gain distributions, you may be able to report the amounts shown in box 2a on line 13 of Form 1040 (line 10 of Form 1040A) rather than Schedule D. See the Form 1040/1040A instructions.

Your REIT and RIC distributions aren't counted as dividends, you count them as capital gains, which is true for complicated reasons relating to those particular corporate forms. But you can use Line 13 of Schedule D, then report it on Line 13 of Form 1040 as capital gains.

  • Thanks. Why the instruction says " Distributions of net realized short-term capital gains are not treated as capital gains. Instead, they are inclu- ded on Form 1099-DIV as ordinary divi- dends." – Tim Apr 22 '14 at 0:42
  • Short term capital gain (holding period under one year) is taxed at the ordinary income rate, not the capital gain rate. Non-qualified ordinary dividends are also taxed at the ordinary income rate. This is a way to tally your tax burden for non-favored income. – NL7 Apr 22 '14 at 11:58
  • is capital gain distribution in 1099-div short term or long term capital gain? – Tim Apr 22 '14 at 12:24
  • You quoted the 1040 instructions above. Ignore holding period and make it all CG. The REIT or RIC makes it OK. – NL7 Apr 22 '14 at 12:51
  • This has changed for 2018. Line 13 of the new form 1040 says, "Subtract line 12 from line 11. If zero or less, enter 0." The instructions for the new 2018 1040 say to report capital gains on "Schedule 1, line 13", and Schedule 1 says to report it on 1040 line 6. – Phil Goetz Apr 15 at 18:04

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