I have entered my data as I believe it should be but my taxes do not look right.
If I clear the sales proceeds and cost (make them $0) my fed return is $882.
Here are the amounts on the Sales Schedule
I have included form comments from the Sales Schedule
Sales proceeds $0 (but this was actually $9308) – form 8949 col D
Purchase price $13,501
Cumulate adjustments ($5695)
Cost bases $7806 – Form 8949 col E
Gain subj as ordinary income $3734 - Form 4797 part II line 10 and 8949 col G
Note that this is a capital loss with distributions of $2716 over 3 years.
The Sales Schedule is clear that $3734 should be negative on form 4797 but unclear if is should be negative or positive on form 8949.
When I make these entries
Box 1d sales proceeds $9308
Box 1e cost $0
Check cost basis incorrect and enter $7806
Check an adjustment is required and enter ($3734)
This makes my capital loss of $2332.
My fed refund jumps to $1110.
TT puts nothing on form 4797 line 10.
If I manually enter $3734, my fed return drops to $282.
Maybe I’m being too simplistic, but with a Cap loss of $2332 and distributions of $2716, I would expect my fed taxes to be just a little more then if I had no sale which made my fed return $882.
