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Level 2
posted Mar 11, 2025 9:17:17 PM

I have sold stock of a private C Corp (1202 eligible). I indicated this fact, but TurboTax still adds the capital gains to my income. How do I correct this?

The gains are $400,000 and the company is well under the revenue threshold.

0 4 1978
2 Best answers
Level 2
Mar 12, 2025 8:16:54 AM

I have held the stock for 11 years.

 

In TT I have the dates correct: 5/1/2013 to 10/30/2024.

I then selected  "This is a small business stock" and then selected "Qualified small business stock eligible for exclusion of gain (section 1202)".

 

TT shows "Sales Selection" as Long-term (Box F).

 

This all looks right to me, so I am puzzled on why TT is not treating it as exclusion.

Thanks for your reply and I appreciate further comments.

 

Expert Alumni
Mar 12, 2025 5:08:48 PM

I entered a sale in the Investment Income section using the same information that you provided, and I do receive the exclusion.  I did leave the Adjustment Amount screen blank rather than entering zero.  Can you review your entries?

4 Replies
Expert Alumni
Mar 12, 2025 6:43:28 AM

To clarify, how long did you hold the stock before selling? 

Level 2
Mar 12, 2025 8:16:54 AM

I have held the stock for 11 years.

 

In TT I have the dates correct: 5/1/2013 to 10/30/2024.

I then selected  "This is a small business stock" and then selected "Qualified small business stock eligible for exclusion of gain (section 1202)".

 

TT shows "Sales Selection" as Long-term (Box F).

 

This all looks right to me, so I am puzzled on why TT is not treating it as exclusion.

Thanks for your reply and I appreciate further comments.

 

Expert Alumni
Mar 12, 2025 5:08:48 PM

I entered a sale in the Investment Income section using the same information that you provided, and I do receive the exclusion.  I did leave the Adjustment Amount screen blank rather than entering zero.  Can you review your entries?

Level 2
Mar 12, 2025 5:23:04 PM

I tried your suggestion and it worked.

 

I'm not sure why -blank- and $0 are treated differently, but I'll roll with it.

 

Thanks!