Diane, thanks for replying, but I am not describing the problem well enough.
This has nothing to do with 1202 QSBS stock sales or an exclusion limitation.
The question is why does TurboTax limit Installment Sales to only 1202 stock - a small segment of total private company stock types? It is an Unsupported Situation that has many more taxpayers than 1202 stock does.
Tax CPAs have been using Installment sales for private company S-corp stock sales for decades.
It does not require any change in TurboTax processing changes.
TurboTax should ask if the stock sold meets the IRS regulation - not traded on a public exchange.
If it does meet the private stock requirement, then handle them all the same way. Then ask if the stock meets 1202 requirements, and if it has been held for more than 5 years, eliminate the capital gain from the 1202 sale.
Is this a clearer description?
