Investors & landlords

The sale of Qualified Small Business Stock (QSBS) eligible for the Section 1202 exclusion can be entered in TurboTax Business for Form 1041 using Forms Mode.

1. Open your return and click the Forms icon in the TurboTax header. 
2. In the list of Forms in My Return on the left, scroll down and look for Schedule D.
3. Click the form name to open it in the large window. 
4. If no Schedule D transaction has been entered, use the Open Form icon above the list of forms.
   Search for Schedule D, click the form name, then Open Form.
5. Scroll down to the Exception Smart Worksheet.
6. Check the Yes box on Line A.
7. Enter a description on Line B.
8. Check "No" on Line B(1).
9. Enter the sales information under column (b) Long-Term.
10. TurboTax will calculate the unadjusted Gain on Line 5.
11. You will need to enter the Section 1202 adjustment on Line 6 as a negative number.
12. The program will calculate the Adjusted gain on Line 7
13. Enter "Q" on Line 8.
14. The transaction will appear on Form 8949 as well as Schedule D. Be sure to attach a copy of the sales confirmation.
15. When you're finished, click Step-by-Step in the header to return to the main screens.

@Penny20