DaveF1006
Expert Alumni

Deductions & credits

According to this Turbo Tax link, here is the best method for entering this information. Rather than entering the proceeds of the sale of qualified small business stock on line 9a of your K-1, enter the figure under stock sales in order to indicate that the sale was "qualified small business stock."  [It's not going to matter that the entry is not on the K-1.]  Please follow these steps:

 

  1. Click on Federal Taxes > Wages & Income> I'll choose what I work on
  2. In the Investment Income section click on the Start/Revisit box next to Stocks, Mutual Funds, Bonds, Other. 
  3. If you have already entered some investment sales, you will see a screen Here's the investment sales info we have so far.  Click on the Add More Sales link.  
  4. If you haven't yet entered some investment sales, you will see a screen Did you sell any investments in 2019?  Click the Yes box.
  5. Answer No to the question, Did you get a 1099-B...?
  6. On the screen, Choose the type of investment you sold, mark the button for Stocks and click Continue.  
  7. You will be asked questions about the date of sale and purchase and the cost and sales price.  If you don't have the exact information, you can just make entries so that the information results in the figure on line 9a of your K-1 [the net gain; long-term sale, etc.]
  8. When you come to the screen, Do Any Special Situations Apply to This Sale? mark the button next to Small business stock and click Continue
  9. You won't see the amount listed in box 9A of the K1 if you report this according to the steps above. As I mentioned above, it doesn't matter if you report this on a K1 or not as long as you report this information in your return.

 

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