The sale of Section 1244 stock is entered under Wages & Income >> Investment Income >> Stocks, Cryptocurrency, etc. Or use the Search tool to jump to "stock."
- Add or start a new sale.
- Choose "Other" (ignore 1099-S notation) and Continue.
- Name the sale (include "1244" to help identify it later).
- Type of Sale: Stock (non-employee).
- Complete the rest of the sale information.
- On the page "Let us know if any of these situations apply to this sale," check the box for "This was small business stock." Click the blue Learn More hyperlink for more information on this choice, including the rules for Section 1244 stock sales.
- On the page "What kind of small business stock did you sell?" check the box for Section 1244 stock.
- You then have the option to edit or delete (trashcan) your entry as needed.
- Add another sale of this type or click Continue to return to your list of investment sales.
To review the results of your entry, go to Forms Mode and open the Capital g/l adj [stock description] form. Scroll down to Part IV and note the line "Sec. 1244 loss on Form 4797" and the amount of the loss. You'll find the entire loss flows to Form 4797 p1 Part II Line 10.
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