How did I receive this investment?

[mogardener33]

Turbotax premier has a question in the investment income section - "How did you receive this investment?" with a pull-down menu showing six options. However, none of the options match how I actually acquired the stock which I sold. The menu also lacks either an open ended place, in which you can type something, or "Other". I'm worried that the IRS will make use of this information in a way I can't predict if I choose an option which isn't correct, just to move ahead with the program. Help!

[DavidD66]

If the way you obtained the investment is not on the list, then try and pick the choice that comes closest to how you received it.

If none of the options are close, I would answer with either:

• I purchased it
• I received it as a gift

None of the options will have any impact on your tax returns.  The information is used by the program to frame other questions to make it easier for you to answer correctly.  For example, if you answer "I received it as a gift", the program asks you the date it was acquired by the previous owner, and what the previous owner's cost basis was.  This is because a gift recipient has the same cost basis and acquisition date as the person that gave the gift.  Your answer is not included in the information transmitted to the IRS and States.