If this was a simultaneous distribution from the ESOP and sale of the stock then this should be easy to enter into TurboTax.
You need to refer to your 1099-R. Typically the 1099-R will have 3
boxes filled in. Box 1 reports a gross distribution, Box 2a reports the
taxable amount and Box 6 reports the difference. That difference is the "Net Unrealized Appreciation" (NUA) of the stock.
For purposes of reporting the sale of the stock your basis is
the Box 2a amount and that should be the amount that gets taxed as income when you enter the 1099-R. The 1099-B should report proceeds which is the same as or close to the Box 1 amount on the 1099-R. The resulting gain should be the same as or close to the Box 6 amount.
So your total taxable income - taxable distribution from ESOP plus LTCG from the 1099-B entry - should be the same as or close to the Box1 gross distribution on the 1099-R, hence no "double taxation" issue.
Make sure that you report the stock sale as "Long term" to get the tax benefit of the lower long term capital gains rates.
Tom Young
