Hello - I have income from an investment in a small privately-owned company that I sold in Nov 2019 after purchasing it in Mar 2019. The company reported the sale to me on a 1099-Misc with a gross income of $56.5k but not accounting for the initial $50k invested 8 months earlier.
In the income section, I'm reporting the $56.5k so it matches the form on file. How do I adjust for this so I pay taxes on the net profit of $6.5k? The program is not accounting for my actual net profit.
Thank you!
Based on your use of the words "investment" and "sold" it seems like this should be reported using the "Stocks, Mutual Funds, Bonds, Other" interview and telling TurboTax that you did not receive a 1099-B. You'd then provide your basis - the $50K - in that interview, resulting in the short term gain.
I don't understand why the transaction was reported on a 1099-MISC if this was really an "investment."
Thanks Tom! I appreciate your help and quick response.
I think they should have sent a 1099-B and mistakenly sent a 1099-misc. I'm not sure why it was a 1099-misc but they haven't responded to any call or email, most likely due to the fact that they are temporarily closed for business.