TurboTax Business 2023: Capital Gains/Loss Worksheet (Schedule D) & Form 8949
I am using the TurboTax Business 2023 program for my Sub-S corp. My corp invests in tax liens. One of the tax liens became worthless in 2023, so I am writing it off as worthless.
I entered that information on the TT Schedule D worksheet, Part II as a long-term capital loss, showing a $4,351 cost (basis) and $-0- proceeds (sale price).
At the top of the Worksheet, line A1, I checked the No box, to indicate that I did not receive a 1099-B for this write-off. On Line F1, Type of Transaction, I inserted “O” for “worthless securities.”
That then generated a checked box entry on the related form 8949, part II, line F—showing no 1099-B. So that is ok.
Also, form 8949, Part II, line 1 columns a-e and h are all ok, showing correct information for holding period, basis and proceeds.
BUT, on that same line, columns f and g are (automatically by TT) incorrectly completed. To my understanding, those two columns are supposed to apply only if there is an adjustment to gain or loss. I do not have any such adjustment and I did not anywhere indicate that I have any adjustment to my basic $4,351 long term capital loss due to the worthless security (the lien).
In column f, code letter E is inserted by the TT program. That should not be there, because, as noted, there is no adjustment in my situation. Moreover, code E only applies if one has received a 1099-B or 1099-S. As noted above, I did not receive either such form, as I so indicated on line A1 of the Capital Gains/Loss (Sched. D) Worksheet.
Also, Column G is demanding that I insert an amount, to show the amount of the adjustment. (If not, I get an "error" when I do my TT fed tax review.) But, as noted, there is no adjustment, and I did not (to my knowledge) anywhere indicate that there should be an adjustment to my capital loss amount.
Am I doing something wrong, or is this a TT program glitch?
