Form 8949 Column (f) Codes

Forum|Forum|4 years ago
February 13, 2022
1 reply
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I found a deficiency in your software and identified it to your agent.

Specifically: Your software options for completing Form 8949 does not contain a Code "L" for column (f) to designate a Non-deductible Loss in the case of selling property to a related person. The IRS Instructions clearly identify this situation.

Your software defaults to Code "O" which is not correct for my situation.

rjs

Level 15

You didn't say what version of TurboTax you are using, or how you entered the sale. As a test I entered several sales with losses in the 2021 CD/Download TurboTax Premier software in Windows. On the "less common adjustments screen," if I check the box saying that the loss is "not deductible for reasons other than disallowed wash sale," and then select "This item was sold to a related party," it puts code L in column (f) of Form 8949. See the screen shot below.

bannonjpAuthor

Level 2

Thank you for your reply. I am using the Deluxe version. Do you know if that line item (regarding the related party) was part of an update because I honestly do not recall seeing it previously. I have since run the updates and was able to complete the line item you showed in your reply which worked for the property sale to a related person and the non-deductible loss.

FYI - When I originally ran the software I only saw 5 line items for the Adjustment options with the 4th being the Wash Sale item and the 5th (last) item being the Adjustment for another reason not already covered. The option you showed me was not available that I recall. I picked the 5th option since it was the closest to my situation. Then later I did an override and entered "L" as the Code but the "L" showed up as an "Error" on Form 8949. So that's why I called an agent at Intuit who said at that time there was no Code "l". Hence my initial question above. I'm glad you fixed the omission. Thanks