A couple things:
- You don't edit the form 8949. You enter the 1099-B information described previously as if it was a separate transaction. This is where you need to make sure this information nets to no gain or loss as noted previously.
- Leave the TT generated form 8949 as it is.
- I missed your question on Section 751. Yes, you need to enter that on the one screen for the sale information.
- This actually complicates the numbers somewhat.
- The Section 751 gain recharacterizes the overall gain or loss. In your case, the Section 751 causes $3,602 of ordinary income. That will then cause your overall capital loss to be $4,567. So once you enter the Section 751 into TT, make sure the new ST capital loss figure is $4,567. This then "nets" to the same overall loss of $965 (3,602 - 4567 =$965)
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*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
