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                                           Undistributed Capital Gains Tax Return 
Form   (Rev. January 2019)2438           ▶ Attach a copy of this form to Form 1120-RIC or to Form 1120-REIT.                                        OMB No. 1545-0123
Department of the Treasury             ▶ Go to www.irs.gov/Form2438 for instructions and the latest information.
Internal Revenue Service 
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—Assets Held One Year or Less 
         (a) Description of property             (b) Date acquired   (c) Date sold             (d) Sales price        (e) Cost or                            (f) Gain or (loss) 
         (Example, 100 shares of Z Co.)            (mo., day, yr.)   (mo., day, yr.)           (see instructions)     other basis                             ((d) less (e)) 
                                                                                                                    (see instructions) 
1 

2      Short-term capital gain 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 dividends          .   . . . . .       . . .   . . .         . .      . .  .  . .     . .     . . .                     .    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 taxpayer) 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. 1-2019)

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Form 2438 (Rev. 1-2019)                                                                                            Page 2 

General Instructions                      Who Must Sign                            Penalty for Late Payment of 
Section references are to the             Form 2438 must be signed and             Tax 
Internal Revenue Code.                    dated by:                                A RIC or REIT that doesn’t pay the  
                                          • The president, vice president,         tax when due generally may be 
Future Developments                       treasurer, assistant treasurer, chief    penalized  1/of21% of the unpaid tax 
For the latest information about          accounting officer; or                   for each month or part of a month 
                                                                                   the tax is not paid, up to a maximum 
developments related to Form 2438         • 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 
What’s New                                assignee, the fiduciary must sign the    cause.
Capital gains tax rate. For tax years     return, instead of the corporate  
                                                                                   Reasonable cause determinations. 
beginning after December 31, 2017,        officer. Returns and forms signed by a 
                                                                                   If the RIC or REIT receives a notice 
the capital gains tax rate has been       receiver or trustee in bankruptcy on 
                                                                                   about penalties after it files its return, 
reduced to 21% for RICs and REITs.        behalf of a RIC or REIT must be 
                                                                                   send the IRS an explanation and we 
                                          accompanied by a copy of the order  
                                                                                   will determine if the RIC or REIT 
Who Must File                             or instructions of the court authorizing 
                                                                                   meets the reasonable cause criteria. 
                                          signing of the return or form.
Regulated investment companies                                                     Do not attach an explanation when 
(RICs) and real estate investment         For a return that is being filed for a   the RIC’s or REIT’s return is filed.
trusts (REITs) file Form 2438 if the      series fund (discussed in section 
RIC or REIT is electing to designate      851(g)), the return may be signed by     Electronic Deposit 
undistributed capital gains under         any officer authorized to sign for the   Requirement
section 852(b)(3)(D) or 857(b)(3)(C).     RIC in which the fund is a series.       RICs and REITs must use electronic 
  If a RIC has more than one fund,        If a corporate officer completes         funds transfers to make all federal 
each fund must file a separate Form       Form 2438, the paid preparer space       tax deposits (such as deposits of 
2438. The term “fund” as used in          should remain blank. Anyone who          employment tax, excise tax, and 
these instructions refers to the          prepares Form 2438 but doesn’t           corporate income tax). Generally, 
definition in section 851(g) and to       charge the RIC or REIT shouldn’t         electronic fund transfers are made 
any RIC that does not have more           sign the return. Generally, anyone       using the Electronic Federal Tax 
than one portfolio of assets.             who is paid to prepare Form 2438         Payment System (EFTPS). However, 
                                          must sign it and fill in the Paid        if you don’t want to use EFTPS, you 
Purpose of Form                           Preparer Use Only area.                  can arrange for your tax 
Form 2438 is used by RICs or REITs        Paid preparer. The paid preparer         professional, financial institution, 
to figure income tax on undistributed     must complete the Paid Preparer          payroll service, or other trusted third 
capital gains designated under            Use Only area (including signing the     party to make deposits on your 
section 852(b)(3)(D) or section           form in the space provided for the       behalf. Also, you may arrange for 
857(b)(3)(C).                             preparer’s signature) and give a         your financial institution to submit a 
  See the instructions for Schedule       copy of Form 2438 to the taxpayer.       same-day tax wire payment 
                                                                                   (discussed below) on your behalf. 
D (Form 1120) and Form 8949 for a         Penalty for Late Filing of               EFTPS is a free service provided by 
definition of capital assets and                                                   the Department of the Treasury. 
information on figuring and reporting     Return 
                                                                                   Services provided by your tax 
capital gains and losses.                 A RIC or REIT that doesn’t file its tax  professional, financial institution, 
                                          return by the due date, including        payroll service, or other third party 
When To File                              extensions, may be penalized 5% of       may have a fee. 
File Form 2438 by the 30th day after      the unpaid tax for each month or 
the end of the RIC’s or the REIT’s        part of the month the return is late,    For more information about 
tax year.                                 up to a maximum of 25% of the            EFTPS, or to enroll in EFTPS, visit 
                                          unpaid tax. The minimum penalty for      the EFTPS website at 
Where To File                             a return that is more than 60 days       www.eftps.gov or call 
File the original form with the:          late is the smaller of the tax due or    1-800-555-4477 (TTY/TDD 
                                          $210. The penalty won’t be imposed       1-800-733-4829). 
  Internal Revenue Service Center         if the RIC or REIT can show that the     Depositing on time. For any deposit 
  201 W. Rivercenter Blvd.                failure to file on time was due to       made by EFTPS to be on time, the 
  Covington, KY 41011                     reasonable cause.                        RIC or REIT must submit the deposit 
  In addition, attach a copy of Form      Note: The minimum penalty amount         by 8 p.m. Eastern time on the day 
2438 to Form 1120-RIC or Form             may be adjusted for inflation. See       before the date the deposit is due. If 
1120-REIT.                                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.

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Form 2438 (Rev. 1-2019) Page 3

Same-day wire payment option. If A RIC’s or REIT’s basis in an asset 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 taxpayers filing this form is approved
SameDayWire. 1120), and the related instructions under OMB control number
for details. 1545-0123 and is included in the
Specific Instructions estimates shown in the instructions
Line 12
Period covered. Fill in the tax year for their business income tax return.
space at the top of the form. Enter the amount from line 12 in
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
Column (b)—Date acquired. A Line 13 Forms and Publications Division,
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 forthe information on this
earlier.
1997) is the date of the deemed sale form to carry out the Internal
and reacquisition. Revenue laws of the United States.
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 priceis
reported in column (d), increase the
cost or other basis by any expense
of sale such as broker’sfees,
commissions, or option premiums
before entering an amount in
column (e).

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