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Box 9. Net Section 1231 Gain (Loss)
The amount in box 9 is generally passive if it is from a:
However, an amount from a rental real estate activity isn't from a passive activity if you were a real estate professional (defined earlier) and you materially participated in the activity.
If the amount is either (a) a loss that isn't from a passive activity or (b) a gain, report it on Form 4797, line 2, column (g). Don't complete columns (b) through (f) on line 2 of Form 4797, Sales of Business Property. Instead, enter “From Schedule K-1 (Form 1120S)” across these columns.
If the amount is a loss from a passive activity, see Passive Loss Limitations in the Instructions for Form 4797. Report the loss following the Instructions for Form 8582 to figure how much of the loss is allowed on Form 4797. If the corporation had net section 1231 gain (loss) from more than one activity, it will attach a statement that will identify the section 1231 gain (loss) from each activity.
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