This solution also works for QSBS reported on K-1 line 11 Code O.
Code O is the correct code on a K-1 for QSBS. If line 11 Code O is entered as is on the K-1 information in TurboTax, it will compute the Fed exclusion and State Tax correctly but will not report the sale anywhere possibly not satisfying the reporting requirements. Leaving out the line 11 Code O information on the K-1 in TurboTax and using the 1099-B solution provided, will compute the Fed exclusion and the State tax correctly AND report the sale on a form 8949 with box F checked and code Q with zero gain which is the exclusion.
Beware of doing both: 1) entering it in the K-1, line 11 Code O AND 2) the 1099-B like stock sale, as TurboTax will then double the amount of the sale for the State Tax and consequently incorrectly increase the State Tax computation. Hope this helps.
