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Scott8075
New Member

Form 8960 - Adjusting 5a and 5b - Net Unrealized Appreciation stock sale

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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1 Reply
CatinaT1
Expert Alumni

Form 8960 - Adjusting 5a and 5b - Net Unrealized Appreciation stock sale

I hope you were able to resolve this with the latest updates to TurboTax.

 

Make sure you have ran all updates. 

 

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