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posted Apr 3, 2023 6:34:13 AM

How do you report a section 1202 qualified small business stock sale with the exclusion when it is on a K-1 line 9a? software doesn't seem to allow that

when you enter a long-term capital gain from a K-1 in the software it never asks you if there are any special situations like it being a qualified small business stock. that means you end up being taxed on the capital gain even though it is supposed to have a 100% exclusion in my case. if i take the sale and report it as a regular stock sale and reduce the k-1 capital gain amount accordingly, my return will not match the k1 the irs receives. what are others doing in this case? this is a huge flaw in this software !

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