How do I report the sale of QSB (Qualifying Small Business) stock? I entered my 1099-B and checked the box for "small business stock" but the exemption was not applied.

[RobertG]

Try this:

1. With your return open, search for 1099-B (upper- or lower case, with or without the dash) in your program's search box.
2. Click the Jump to 1099-B link in the search results.
3. On the Did you sell any investments? screen, answer Yes.
4. If you land on the Summary of All Accounts screen instead, click Edit 
5. “If you have additional info about this sale, you can enter it on your own, or we can guide you.”, Select Guide me step-by-step (See the attached screenshot below. Click to enlarge.)
6. Click My sale involves one of these uncommon situations. (See the attached screenshot below. Click to enlarge.)
7. On Choose the type of investment you sold, choose "Stock" (See the attached screenshot below. Click to enlarge.)
8. Review Some Basic Info About this Sale, Click Continue
9. Click through several screens
10. On "Do Any Special Situations Apply to This Sale?", select "Small business stock" click Continue  (See the attached screenshot below. Click to enlarge.)
11. On "What Kind of Small Business Stock?" select the appropriate section 1202 type, click Continue
    Continue through the interview

This question was previously answered by ColeenD3 Employee Tax Expert

[luke_r_swanson]

I am able to select "Small business stock" for the question "Do Any Special Situations Apply to This Sale?" but I never get to the screen asking what kind of small business stock it was. Could this be a bug in this year's software?

[ColeenD3]

After you enter all the information on the initial page, you will get this screen. The words have changed in the 2019 program. See the screen shot below.

[luke_r_swanson]

Yes, this is the screen I see and I selected "This was small business stock". The problem is I never get to the screen asking "On "What Kind of Small Business Stock?"  where I should be able to select the 1202 type and thus the correct tax treatment isn't applied.

[taxpay2020]

I have similar problem as luke_r_swanson initially reported. I am using Turbotax Home & Business 2019.

I followed  RobertG 's instructions all the way to step 11.  I got this question "What Kind of Small Business Stock?" select "Qualified small business stock not reinvested ... The corporation was not a empowerment zone business" Continue

Next Screen "Tell Us About the Stock Sold" I checked all boxes applied. Continue

One more question about your sale

"This sale qualifies for the small business stock exclusion of 100% of the gain. But the amount eligible for exclusion might be limited. "

Have you ever sold any stock eligible for the small business stock exclusion before 2019? 

Answer: No, I haven't . Continue

The next screen says "You have a Long-Term Gain from This Sale" which essentially does NOT exclude the long-term capital gain for this QSB sale.  

I also checked the Form 8949 generated by Turbotax. The column 1f does not have a code "Q" as indicated by IRS "Instruction for Schedule D".

Since this is the first time I sold QSB stock, and my numbers are far below a million, I don't believe my exclusion is limited any how. 

What I am missing here?

[DianeC958]

You may want to delete this transaction and put the information in again. 

From what you described you are not missing any information.  Once you have completed the information you will see a screen like this showing the Adjusted long-term gain as $0.

[wu1999]

I never see this screen.  I got the same issue as previous people asked

[DaveF1006]

You should be able to do that using the "Stocks, Mutual Funds, Bonds, Other interview. 

If you didn't get a 1099-B then you should be dropped right into an interview where you select "Stock" as what was sold.  As you proceed with the interview at some point you'll come to a page that says Let us know if any of these situations apply to this sale  this is where you would indicate this is Small Business Stock.