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Form 1045 Schedule A Line 7 Non-Business Income Line 7 is another one of those calculations, that only the I.R.S. could figure out how to make incomprehensible. So we need another table, where BR means "business related" (or other) and NBR means "not business related". Since our goal here is simply to add up the NBR income, we're gonna fudge a bit on what is BR exactly, since it's not material to our current purpose. Maybe the I.R.S. should just call this "not NOL-related income".
|Form 1040 |
|Line Item Description||BR||NBR|
|7||Wages, salaries, tips ||X |
|8||Taxable interest ||X |
|9||Ordinary dividends ||X |
|10||Taxable refunds, etc ||X |
|11||Alimony received ||X |
|12||Business income or loss ||X |
|13||Capital gain or loss ||X |
|14||Other gains or loss ||X |
|15|| IRA distributions ||X |
|16|| Pensions and annuities ||X |
|17||Rental real estate, etc ||X |
|18||Farm income or loss ||X |
|19||Unemployment compensation ||X |
|20||Social security benefits ||X |
|21||Other income ||X |
So you add up your amounts that are in the NBR column above, and enter that amount here on Line 7.
Form 1045 Schedule A Line 8Remember that we've already decided to name Line 5 as "Actual Realized Net Non-business Capital Gain". Now since Line 7 is "Non-business income other than capital gains", then when we are instructed to "add lines 5 and 7" can you guess what this new Line 8 should be called?
That's right. Line 8 should be called "Actual Net Non-business Capital Gain and Gross Income". In other words, this number, Line 8, represents what you actually made in all of your non-business activity without regard to I.R.S. exclusions and limitations on what you can report. It is the more real number if you will. But before deductions, which we will get to next, and without yet taking into account any non-business capital loss. (Do you ever get the feeling you're being led by the nose through a labyrinth?)
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