How do I resolve Capital Asset date issues that were not an issue in 2024 TurboTax?

[David448]

TurboTax Smart Check is treating Capital Asset Sales dates as an error. TurboTax 2024 handled these dates without a problem.

[AnnetteB6]

Please clarify the error you are seeing so that someone can try to assist you.  What does the error say?  

[David448]

SmartCheck (TurboTax 2025) shows the date sold cannot be in 2026. This was not an issue in TurboTax 2024.

The problem arises from earnings earned and reported in 2025, but distributed in 2026. TurboTax support said to change the date (12/31/2025, e.g.).

[MonikaK1]

If you sold an asset and the transaction closed in 2025, then that 2025 closing date should be entered in TurboTax, as the sale is deemed complete upon closing, even though you may have received proceeds from the sale at a later date.

Any year that you have to report a capital asset transaction, you’ll need to prepare Form 8949 before filling out Schedule D unless an exception applies.

The IRS instructions for Form 8949 indicate that you should enter in the "Date sold or disposed of" column the date you sold or disposed of the property. Use the trade date for stocks and bonds traded on an exchange or over-the-counter market. For a short sale, enter the date you delivered the property to the broker or lender to close the short sale.

@David448 

[jveino]

This a bad answer because changing this changes the date on the security Capital Gain worksheet to the wrong date.  The software SHOULD allow a 2026 date because in the case of FNMA or FHMC securities the 2026 date is legit due to adjustments in the rate.

THIS IS CLEARLY A TURBOTAX BUG that needs to be fixed

[DianeW777]

Regardless of the security, in tax law, which has not changed in this regard for more years than I can count, the transaction/sales/redemption date must be in the current tax year (January-December, 2025 currently) is not reported if it settles in the future tax year (2026).

Redemption transactions with a 2026 date are not reported on your 2025 tax return (due April 2026). The IRS operates on a strict calendar-year basis; transactions occurring between January 1, 2026, and December 31, 2026, must be reported on your 2026 tax return filed in 2027. The information provided by our tax expert @Monika1 is accurate.

@jveino