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To be technically correct, you would have to defer to the laws where you live regarding ownership of property to decide who the income belongs to. Whoever was entitled to the interest income should report it on their tax return. If it is a joint account wherein either one of you could withdraw the funds and have legal title to them, then you could enter it on either tax return by agreement between the two of you that one of you is entitled to it.         

The "missing" data on Lines 8-12 is usually not an error, but rather the software's way of following IRS Publication 590-B. If your software uses the Taxable IRA Distribution Worksheet (based on Pub 590-B) to calculate your conversion, it often bypasses Lines 6 through 12 on the actual Form 8606.   Why it does this: If your basis (Line 5) is equal to or greater than the total amount converted, the math becomes a "short circuit." Instead of showing the work on the form, the software performs the calculation on a background worksheet and just "jumps" to the final result on Line 13.   The Asterisk (*): That little star next to Line 13 is the giveaway. It technically means: "Calculated using the IRS Publication 590-B worksheet instead of the lines above."   Even if those lines are blank, the form is valid and will be accepted by the IRS as long as the following is true:   Line 13 shows the correct non-taxable amount (usually your total contribution, e.g., $7,000). Line 16 (in Part II) has the total amount you converted. Line 18 (Taxable amount) is $0 (or just the amount of any interest/earnings).   If the three conditions are true, this 8606 is correct.

Thank you Robert for your reply. But I'm still a little confused. I understand in my example that I would continue to depreciate the 67,878 (and can rename as the new property. But that I can also depreciate the cash "boot" received (recognized capital gain) of 119,867.  Is this depreciated at 27.5 years?  What do I name it on the depreciation schedule, is this the Property B in the "new method"?

@abazba12 wrote: I DO itemize for Schedule A but I don’t meet the 7.5% level of medical expenses needed in order to deduct medical expenses on my 1040.   Based on your answer, I will be paying taxes on the Medicare premiums deducted from my social security gross benefit amount, or at least 85% of it because my income is too high. Did I get that right? No, the Medicare premiums would not be entered on your tax return.  You are only taxed on the Social Security benefits you received as shown in box 5 of the SSA-1099.

You have 3 options and must pick one. VA 2025 Form 760 Resident Individual Income Tax Instructions demonstrate the either or situation. For example: Page 9 states: A taxpayer who claims an age deduction may NOT claim a disability income subtraction, Credit for Low-Income Individuals, Virginia Earned Income Credit, or Refundable Virginia Earned Income Credit. The age deduction is $12,000 off your income which for most tax payers is the better deal.    If you have lower income and the $12,000 is not helpful, the EIC may be more helpful. Page 25 states: Line 12 Exemptions to Compute Credit: If you qualify for the Credit for Low-Income Individuals, enter the number of personal and dependent exemptions you reported on your Form 760. Do not include exemptions for age 65 or older and blind. This means only your exemption counts for the $300 not your additional exemption due to age/blindness. Generally, the $12,000 subtraction is better.   Line 14 Enter the amount of Earned Income Tax Credit claimed on your federal return. Line 16b Multiply Line 14 by 20% (.20). Line 17 Choose the credit option that benefits you the most. This is where you choose between the $300 above or 20% of the federal EIC if you do not want the $12,000 age deduction.   You should be able to cancel the age deduction and take the EIC in the credit section. The program knows the rules and is calculating which of the 3 it thinks is best for you. 

Hello Doug,  Your finding was the solution to my problem after spending over two hours on the phone with the Turbo Tax support desk with no success.  The only thing I found slightly different was that I had to grant both Intuit.com and the "Turbo Tax Desktop Partner Connection" communication link access to my local network to complete the data exchange.   Appreciate the assist!  Best,  Ron 

Just out if curiosity,  you are saying that since a person knows that the 5 year rule was met that the code t  would be treated the same as code q and only needs to be reflected on the 1040 however wouldnt the irs require other documentation since the company did not specify it was qualified (tax free) other information obtained stated that an additional form would be required and the irs would need to investigate. 

I was charged a 5 day early refund fee out of my State Return. But I did NOT select that I opted for standard delivery to be deducted out of my Federal Refund.    I called customer service they said I selected 5 day early refund. When I explained I checked my State's Refund Status page the date of funds to be deposited was today 2/5/2026 so technically if I had opted for the 5 days early then it should have been put in my account on 1/31/2026.    Instead of helping me the customer service rep hung up on me. I have proof of my order number, order details and state refund status page. I should be refunded the money they took from me. 

Thank you, I reviewed your return and was able to see the Roth IRA Contribution Limit Worksheet (in TurboTax Desktop Forms you see it towards the end of the federal forms under "Roth IRA").    Your Modified Adjusted Gross Income (MAGI) was over the limit and therefore you cannot make a Roth IRA contribution. Please see Worksheet 2-1. Modified Adjusted Gross Income for Roth IRA Purposes for additional information how your MAGI for Roth IRA purposes was calculated.   Please see What if I made an excess Roth IRA contribution for options how to fix this excess contribution. If you decide to remove the excess contribution please make sure you request with your financial institution to withdraw the excess contribution plus earnings to ensure your Form 1099-R has the correct codes.