Get your taxes done using TurboTax

Yes, you may report the sale of Qualified Small Business stock eligible for Section 1202 exclusion as an investment sale following these steps in TurboTax Online 2021. Please note the Learn More links throughout this process that may answer questions you have about a particular choice.

1. Go to Federal >> Income >> Stocks, Cryptocurrency Mutual Funds, etc.
2. Click Start or Add more sales
3. Choose Stocks, Bonds, Mutual Funds (1099-B)
4. Choose I'll type it in myself and enter Bank or Brokerage name
5. Choose No for Employee Stock
6. Choose No (1-3) for More than three sales
7. Choose Yes for Other types of investments (this is most important for section 1202)
8. Choose Yes for Did you buy every investment?
9. Choose One-by-one for How to enter
10. Under Sales section title, choose Long term or Short term, did not receive 1099-B
11. Under Type of investment, choose Stock (non-employee)
12. Enter dates, proceeds, and basis for your sale
13. Under Let us know if any of these situations apply to this sale, choose This is a small business stock (see screenshot)
14. Under What kind of small business stock did you sell? choose Qualified Small Business (section 1202) (see screenshot)
15. Continue to back to the Investment Sales Summary page.