1099-DIV box guide
1099-DIV Boxes 2b-2f: Special capital gain categories
Separate section 1250, section 1202, collectibles, and section 897 gain categories.
Return destination
Where the amount goes
Schedule D special-rate gain and applicable worksheets
1099-DIV
Return to the complete form guide and reconciliation worksheet.
Checks before filing
- Do not add a component to Box 2a a second time.
- Keep the exact box label with the amount in workpapers.
- Use the current Schedule D instructions for special-rate worksheets.
How Boxes 2b-2f works
Each of Boxes 2b through 2f isolates a slice of the Box 2a total that the standard long-term capital gains rate doesn't apply to on its own. Box 2b unrecaptured section 1250 gain relates to depreciation recapture on certain depreciable real property. Box 2c section 1202 gain concerns qualified small business stock, where the fund also owes the recipient a separate statement showing the acquisition and sale details together with the applicable exclusion percentage, since that percentage depends on when the underlying stock was originally acquired. Box 2d collectibles gain applies to a 28% maximum-rate category. Boxes 2e and 2f cover section 897 amounts tied to dispositions of U.S. real property interests and, per the instructions, are relevant mainly to RICs and REITs completing the form rather than to an individual recipient filing their own return.
Every amount reported here is already folded into either Box 1a (for Box 2e) or Box 2a (for Boxes 2b, 2c, 2d, and 2f) — none of them is an addition on top of those totals. When comparing a consolidated statement against your own records, treat these boxes as annotations that tell you which rate worksheet a slice of the total belongs to, not as separate income items requiring their own line elsewhere on the return.
Not every 1099-DIV populates any of these boxes; most retail brokerage statements leave them blank because the fund had no special-category gain for the year. When one is populated, keep the exact box label attached to the dollar amount in your own workpapers, because the section 1202 exclusion percentage and the section 1250 recapture calculation depend on facts — acquisition date, property type — that aren't otherwise visible from the number alone.
Worked example
A REIT's year-end statement shows Box 2a of $500, with $120 of that identified in Box 2b as unrecaptured section 1250 gain. The taxpayer reports the full $500 as part of their long-term capital gain distributions, but carries the $120 unrecaptured section 1250 portion separately onto the applicable Schedule D worksheet so it's taxed at its own maximum rate rather than the standard long-term rate.
Related 1099-DIV boxes
Box 1a: Total ordinary dividends
Report total ordinary dividends without adding qualified dividends from Box 1b twice.
Box 1b: Qualified dividends
Identify the part of ordinary dividends potentially eligible for qualified-dividend tax rates.
Box 2a: Total capital gain distributions
Carry long-term capital gain distributions to Schedule D or direct reporting when permitted.
Box 3: Nondividend distributions
Track return-of-capital distributions against investment basis before reporting gain.
Frequently asked questions
What does Boxes 2b-2f mean on 1099-DIV?
Boxes 2b through 2f identify portions of capital gain distributions that can require special maximum rates, exclusions, or filing treatment. They are components or classifications, not amounts to add blindly to Box 2a.
Do I add Box 2b or 2c to Box 2a, or is it already counted?
It's already counted. Boxes 2b through 2f are subsets of Box 2a describing what rate category a portion of that total belongs to — adding them again would double the income.
My statement has an amount in Box 2e (section 897) — do I need to do anything with it?
For most individual U.S. recipients, no separate action is required; the instructions note this box mainly serves RICs and REITs completing their own filings. Keep the statement in your records in case a foreign-person or entity-level filing question comes up later.
What is the section 1202 exclusion percentage in Box 2c, and where do I find it?
The fund is required to send a separate statement identifying the exclusion percentage along with the corporate name and acquisition and sale dates, because the percentage depends on when the underlying qualified small business stock was acquired. Check that supplemental statement rather than assuming a single rate applies.