I am using TT Premier desktop. I received a 1099R with a gross distribution of around $35K. We started the annuity in about 2000 with an initial investment of $10K. We are closing the annuity, which triggered a total distribution. The annuity was sold to a new company and, apparently, the basis was lost, so the 1099R does not list a taxable amount and both boxes on line 2b are checked (Taxable amount not determined and Total Distribution).
I was looking for a way, after entering all of the information from the 1099R into TT, to apply the known basis of $10K, so the taxable amount would be about $25K, not $35K. After talking to several help specialists (well up the help ladder), the recommendation was to edit the values entered from the 1099R to reflect the correct taxable amount, even though TT on the 1099R entry page states, "Enter the information exactly it appears on the 1099-R". The "exact" is bolded on the TT page. I was instructed to add a Taxable amount on Line 2a and uncheck the box on Line 2b for Taxable amount not determined. This was the recommendation, because apparently, the software cannot apply a known basis to a gross distribution.
Does this make sense to anyone?
