1099-MISC for investment

[SB1492]

Hi,

I received a 1099-MISC from a Trust that was created after the SEC shutdown an investment company I bought products from.  The 1099 is for earnings from the company's remaining investor investments that were all put in a pool to payout the investors.  

The 1099 payment was not return of the invested capital which is forecast to be paid out in the future.

When I enter the 1099-MISC in TurboTax, TurboTax wants to treat it an business income.  How do i change this to investment income. 

The investment was over 10+ years ago so hopefully any capital gains will be long term.

Appreciate any thoughts/help.

Thanks!

[Vanessa A]

Since this is investment income, you should not have received a 1099-Misc to report the income.  Since you did, you can just enter in the investment section.  To do so, you can select 

1. Income 
2. Stocks, Cryptocurrency, Mutual Funds, Bonds and Other under Investment income. 
3.  Select Other, then enter the information from your 1099-Misc. 
4.  When you get to the part for the description you can include 1099Misc wrongly categorized or something noting that this is the income from the 1099-Misc. 

Entering it here will allow it to be appropriately taxed at capital gains rates since it was an investment held longer than one year.  The capital gains rates are as follows based on income

• Zero percent rate for the following income
  • $44,625 for single or MFS
  • $59,750 for HOH
  • $89,250 for Married Filing Jointly
• Fifteen percent for income more than above but less than below
  • $276,900 for MFS
  • $492,300 for Single
  • $523,050 for Head of Household
  • $553,850 for Married Filing Jointly
• Twenty percent for the amount that your taxable income is over the 15% level