Form 2439 – Notice to Shareholder of Undistributed Long‑Term Capital Gains

Last reviewed: 2025‑10‑26

Use the Form 2439: Form 2439 – Notice to Shareholder of Undistributed Long‑Term Capital Gains Tax Form Calculator Form 2439: Form 2439 – Notice to Shareholder of Undistributed Long‑Term Capital Gains as a stand alone tax form calculator to quickly calculate specific amounts for your 2026 2439 state tax return. Alternatively, you can use one of our Combined Federal and State Tax Estimators to quickly calculate your salary, tax, and take-home pay.

Form 2439 is issued to shareholders of a RIC or REIT when the entity retains long‑term capital gains instead of distributing them and pays tax on those gains. The form reports each shareholder’s portion of those retained gains and the tax the entity paid, allowing the shareholder to claim a credit and adjust their basis.

Key items that must be reported on Form 2439 include:

• Box 1a: Total undistributed long‑term capital gains allocated to the shareholder.
• Box 1b to 1d: Specific character breakdowns such as unrecaptured Section 1250 gain, Section 1202 gain, and collectibles gain.
• Box 2: Tax paid by the RIC or REIT on the gains shown in Box 1a, which the shareholder may be able to claim as a tax credit.
• Basis adjustment: The shareholder must increase the cost basis of the shares by the difference between the gain in Box 1a and the tax paid in Box 2.

For shareholders, the presence of Form 2439 means the IRS treats the retained gains as if they were distributed. Reporting is required even when no cash changed hands. You’ll report the amount from Box 1a as long‑term capital gain on Schedule D of Form 1040 and claim the tax paid from Box 2 as a credit in the “Other payments” section. Failure to report may lead to discrepancies and audit triggers.

From a planning perspective, when investing in RICs or REITs, monitor whether the fund historically retains gains and issues Form 2439. Retained gains can impact timing of tax liabilities and basis calculations. Consult your tax advisor or use our Form 2439 calculator to anticipate and integrate this into your tax return.

Important Notes

All calculations are estimates for guidance only. Always review your return and consider professional advice when submitting official filings.