Where/How to enter 1099-OID, Tax Exempt OID (box 11) in TurboTax Business for a Trust?

[mseklem]

TurboTax Business TY 2018 - for Trust.  Trying to enter 1099-OID box 11 Tax Exempt OID/Noncovered Acquisition Preimum.  As others have pointed out, this is a typical problem for Trusts, and an real 1099-OID template would solve it.  Does not seem too much to ask for TTAX Business cost.

The recommended answer to "fake it" using a 1099-INT entry does not work using easy step - as there is no Box 13 available in the template.  By going to "Forms" you can access 1099-INT box 13, but entering a value generates an ERROR saying that box 13 should be blank.  Federal Review show the same error. 

See Screen Shots for example:

[tagteam]

" ...entering a value generates an ERROR saying that box 13 should be blank."

You will get the same error in the TurboTax individual income tax preparation products if Box 8 is less than Box 13.

[no-name1]

TT Business for MAC  - all of my bonds are tax exempt.  Where do I enter 

• tax exempt 1099-OID 
• Acquisition Premium (Covered Transactions) 1099-OID - do I enter as a positive or negative number?
• Accrued Interest Paid - do I enter as a positive or negative number ?

ps - I see a line for Bond premium on tax exempt bond - is this a positive or negative number?

[BrittanyS]

To enter 1099-OID in TurboTax, you would follow these steps:

1. Click Wage and Income
2. Scroll down to Less Common Investments and Savings, Click Show More
3. Click Start next to 1099-OID

The acquisition premium and accrued interest paid would be entered as positive numbers in TurboTax.

@mseklem 

[no-name1]

Those are the instructions for 'regular' Turbotax - not TurboTax business.

Click Income

Click 1099-INT

you will not see any box 13 for tax exempt bond premium

no input for 1099-OID tax exempt OID; no input for Acquisition Premium (covered), no input Accrued Interest Paid

[RobertB4444]

If your business received a 1099-OID then you will need to enter it in several places.

First and foremost investment income goes in that section.  Under investment income you'll find sections for taxable and tax-exempt interest.  Enter the items from your 1099-OID here (accrued interest in an OID transaction is taxable to the buyer, not the seller.  So accrued interest is entered as a positive number and is taxable).

Any acquisition premium is used to reduce the amount of interest that is taxable on your return.  You can either subtract the premium from the taxable interest and then enter the result or you can enter first the taxable amount as a positive number and the acquisition premium as a negative number.  The end result is the same.

@no-name1 

[no-name1]

Thank you for your reply.

Trying to be perfectly clear.  I am using TurboTax Business for Windows (downloaded). Not TT Home & Business.  Your instructions must be from Home & Business.   I am working on 1041 TRUST returns.  All of the interest income is from tax exempt bonds.  PLEASE open the TT Business for Windows software before responding.  

1.  Go to Income. Click on 1099-INT.   Click on Add Interest Income so you can see the screen "Enter Your Interest Income. " There is NO Box 13 for bond premium on tax exempt bond (covered transaction.

2.  There is no separate category for 1099-OID anywhere in TT Business.  My 1099-OID requires Box 6 to enter Acquisition Premium; and box 11 to enter Tax Exempt OID

3. There is no capability anywhere to enter Accrued Interest Paid or Acquisition Premium (covered transaction) 

IRS requires all of these to be reported.  

[MarilynG1]

This issue is currently under Investigation for TurboTax Business.  Click this link to sign up for updates on resolution. 

@no-name1 

[BrittanyS]

An enhancement request for entering the 1099-OID is in the process of being added to the TurboTax software.  The enhancement will allow you to enter the 1099-OID for TurboTax Business as you can for the TurboTax personal software. 

@no-name1