I retired in 2022 and did an NUA of Company stock. Assume cost basis is $10 per share, price at distribution is $100. Stock was kept for one year and sold for $150. I have a LTCG of $140. The NUA portion $100-$10 = $90 is not subject to NIIT. The gain since distribution $150--$100 = $50 is subject to NIIT.
Form 8960 Line 5a is showing $140 from the 1099 entry and applying NIIT to all $140.
Based on the instructions, I think It should be reported as $50 on 5a and $90 on 5b.
I cannot enter a positive number on 5b - only a negative and I cannot change 5a at all. If I enter -90 on 5b, 5a remains $140 and it nets out to $50 which is what the NIIT is calculated on. - But I am sure this will be flagged as it appears I am reporting a loss.
How do I adjust 5a to $90 and 5b to $50 or am I missing something?
Thanks!
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