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Undistributed Capital Gains Return Form 2438 OMB No. 1545-0123 (Rev. December 2020) ▶ Attach a copy of this form to Form 1120-RIC or to Form 1120-REIT. Department of the Treasury ▶ Go to www.irs.gov/Form2438 for instructions and the latest information. Internal For calendar year 20 or tax year beginning , 20 , ending , 20 Name of fund or REIT Employer identification number Please Type Number, street, and room or suite no. (If a P.O. box, see instructions.) or Print City or town, state, and ZIP code

Part I Short-Term Capital Gains and Losses— Held One Year or Less (a) Description of (b) Date acquired (c) Date sold (d) Sales price (e) Cost or (f) Gain or (loss) other basis (Example, 100 shares of Z Co.) (mo., day, yr.) (mo., day, yr.) (see instructions) (see instructions) ((d) less (e)) 1

2 Short-term from installment sales from Form 6252, line 26 or 37 ...... 2

3 Unused capital loss carryover (attach computation) ...... 3 ( )

4 Net short-term capital gain or (loss). Combine lines 1 through 3. See instructions ...... 4 Part II Long-Term Capital Gains and Losses—Assets Held More Than One Year 5

6 Gain from Form 4797, column (g), line 7 or 9 ...... 6

7 Long-term capital gain from installment sales from Form 6252, line 26 or 37 ...... 7

8 Net long-term capital gain. Combine lines 5 through 7 ...... 8 Part III Summary of Parts I and II 9 a Net capital gain. Enter excess of net long-term capital gain (line 8) over net short-term capital loss (line 4) ...... 9a b Capital gain ...... 9b 10 Undistributed capital gains. Subtract line 9b from line 9a ...... 10 11 Amount of undistributed capital gains on line 10 designated under section 852(b)(3)(D) or 857(b)(3)(C) ...... 11 12 Amount of undistributed capital gains not designated under section 852(b) (3)(D) or 857(b)(3)(C). Subtract line 11 from line 10. See instructions . . . 12 13 Capital gains tax. Multiply line 11 by 21% (0.21) ...... 13 Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, Sign correct, and complete. Declaration of preparer (other than ) is based on all information of which preparer has any knowledge. Here ▲ ▲ Signature of officer Date Title Print/Type preparer’s name Preparer’s signature Date PTIN Paid Check if self-employed Preparer Use Only Firm’s name ▶ Firm’s EIN ▶ Firm’s address ▶ Phone no. For Paperwork Reduction Act Notice, see instructions. Cat. No. 11856I Form 2438 (Rev. 12-2020) Form 2438 (Rev. 12-2020) Page 2 General Instructions Who Must Sign Penalty for Late Payment of Section references are to the Form 2438 must be signed and Tax . dated by: A RIC or REIT that doesn’t pay the • The president, vice president, tax when due may generally be Future Developments 1 treasurer, assistant treasurer, chief penalized /2 of 1% of the unpaid tax For the latest information about accounting officer; or for each month or part of a month developments related to Form 2438 the tax is not paid, up to a maximum • Any other corporate officer (such of 25% of the unpaid tax. The and its instructions, such as legislation as tax officer) authorized to sign. enacted after they were published, go penalty won’t be imposed if the RIC to www.irs.gov/Form2438. If a return is filed on behalf of a RIC or REIT can show that the failure to or REIT by a receiver, trustee, or pay on time was due to reasonable Who Must File assignee, the fiduciary must sign the cause. return, instead of the corporate Regulated companies Reasonable cause determinations. officer. Returns and forms signed by a (RICs) and real estate investment If the RIC or REIT receives a notice receiver or trustee in bankruptcy on trusts (REITs) file Form 2438 if the about penalties after it files its return, behalf of a RIC or REIT must be RIC or REIT is electing to designate send the IRS an explanation and we accompanied by a copy of the order undistributed capital gains under will determine if the RIC or REIT or instructions of the court authorizing section 852(b)(3)(D) or 857(b)(3)(C). meets the reasonable cause criteria. signing of the return or form. If a RIC has more than one fund, Do not attach an explanation when For a return that is being filed for a each fund must file a separate Form the RIC’s or REIT’s return is filed. series fund (discussed in section 2438. The term “fund” as used in 851(g)), the return may be signed by Electronic Deposit these instructions refers to the any officer authorized to sign for the definition in section 851(g) and to Requirement RIC in which the fund is a series. any RIC that does not have more RICs and REITs must use electronic than one portfolio of assets. If a corporate officer completes funds transfers to make all federal Form 2438, the paid preparer space tax deposits (such as deposits of Purpose of Form should remain blank. Anyone who employment tax, tax, and Form 2438 is used by RICs or REITs prepares Form 2438 but doesn’t corporate ). Generally, to figure income tax on undistributed charge the RIC or REIT shouldn’t electronic fund transfers are made capital gains designated under sign the return. Generally, anyone using the Electronic Federal Tax section 852(b)(3)(D) or section who is paid to prepare Form 2438 Payment System (EFTPS). However, 857(b)(3)(C). must sign it and fill in the Paid if you don’t want to use EFTPS, you Preparer Use Only area. can arrange for your tax See the instructions for Schedule Paid preparer. The paid preparer professional, financial institution, D (Form 1120) and Form 8949 for a payroll service, or other trusted third definition of capital assets and must complete the Paid Preparer Use Only area (including signing the party to make deposits on your information on figuring and reporting behalf. Also, you may arrange for capital gains and losses. form in the space provided for the preparer’s signature) and give a your financial institution to submit a When To File copy of Form 2438 to the taxpayer. same-day tax wire payment (discussed below) on your behalf. File Form 2438 by the 30th day after Penalty for Late Filing of EFTPS is a free service provided by the end of the RIC’s or the REIT’s Return the Department of the Treasury. tax year. Services provided by your tax A RIC or REIT that doesn’t file its tax Where To File professional, financial institution, return by the due date, including payroll service, or other third party File the original form with the: extensions, may be penalized 5% of may have a fee. the unpaid tax for each month or Department of the Treasury part of the month the return is late, For more information about Internal Revenue Service Center up to a maximum of 25% of the EFTPS, or to enroll in EFTPS, visit Kansas City, MO 64999 unpaid tax. The minimum penalty for the EFTPS website at In addition, attach a copy of Form a return that is more than 60 days www.eftps.gov or call 2438 to Form 1120-RIC or Form late is the smaller of the tax due or 1-800-555-4477 (TTY/TDD 1120-REIT. $435. The penalty won’t be imposed 1-800-733-4829). if the RIC or REIT can show that the Depositing on time. For any deposit failure to file on time was due to made by EFTPS to be on time, the reasonable cause. RIC or REIT must submit the deposit Note: The minimum penalty amount by 8 p.m. Eastern time on the day may be adjusted for inflation. See before the date the deposit is due. If the instructions for your applicable the RIC or REIT uses a third party to income tax return for the minimum make the deposits on its behalf, they penalty amount for the current tax may have different cutoff times. year. Form 2438 (Rev. 12-2020) Page 3

Same-day wire payment option. If A RIC’s or REIT’s basis in an You are not required to provide the RIC or REIT fails to submit a it held on January 1, 2001, for which the information requested on a form deposit transaction on EFTPS by the RIC or REIT made an election to that is subject to the Paperwork 8 p.m. Eastern time the day before recognize any gain (under section Reduction Act unless the form the date a deposit is due, it can still 311 of the Taxpayer Relief Act of displays a valid OMB control make the deposit on time by using 1997) is the asset’s closing market number. Books or records relating to the Federal Tax Collection Service price or fair market value, whichever a form or its instructions must be (FTCS). To use the same-day wire applies, on the date of the deemed retained as long as their contents payment method, the RIC or REIT sale and reacquisition, whether the may become material in the will need to make arrangements with deemed sale resulted in a gain or administration of any Internal its financial institution ahead of time unallowed loss. Revenue law. Generally, tax returns regarding availability, deadlines, and and return information are costs. Financial institutions may Line 4 confidential, as required by section charge a fee for payments made this Enter any net short-term capital gain 6103. way. To learn more about the from line 4 in Part I of Form 8949. The time needed to complete and information the RIC or REIT will need Also identify the gain as “Net short- file this form will vary depending on to provide to its financial institution term capital gain from line 4, Form individual circumstances. The to make a same-day wire payment, 2438” in column (a) of Form 8949. estimated burden for business visit the IRS website at www.irs.gov/ See Form 8949, Schedule D (Form filing this form is approved SameDayWire. 1120), and the related instructions under OMB control number for details. Specific Instructions 1545-0123 and is included in the Line 12 estimates shown in the instructions Period covered. Fill in the tax year for their business income tax return. Enter the amount from line 12 in space at the top of the form. If you have comments concerning Part II of Form 8949. Also identify the accuracy of these time estimates Address. Include the suite, room, or the gain as “Undistributed capital or suggestions for making this form other unit number after the street gains not designated (from Form simpler, we would be happy to hear address. If the Post Office does not 2438)” in column (a) of Form 8949. from you. You can send us deliver mail to the street address See Form 8949, Schedule D (Form comments from www.irs.gov/ and the RIC or REIT has a P.O. box, 1120), and the related instructions FormComments. Or you can write to show the box number instead of the for details. street address. the Internal Revenue Service, Tax Forms and Publications Division, Column (b)—Date acquired. A Line 13 1111 Constitution Ave. NW, IR-6526, RIC’s or REIT’s acquisition date for Deposit the tax due by the 30th day Washington, DC 20224. an asset it held on January 1, 2001, after the end of the tax year. for which it made an election to Do not send the tax form to this recognize any gain (under section Paperwork Reduction Act Notice. office. Instead, see Where To File, 311 of the Taxpayer Relief Act of We ask for the information on this earlier. 1997) is the date of the deemed sale form to carry out the Internal and reacquisition. Revenue laws of the . Column (d). Enter either gross sales You are required to give us the price or net sales price. If net sales information. We need it to ensure price is entered, do not increase the that you are complying with these cost or other basis in column (e) by laws and to allow us to figure and any expenses reflected in the net collect the right amount of tax. sales price. Lines 1 and 5 Column (e). If gross sales price is reported in column (d), increase the cost or other basis by any expense of sale such as broker’s fees, commissions, or option premiums before entering an amount in column (e).