How to enter 1099B tax-exempt Bond?

[DawnC0]

Form 1099-B (Proceeds from Broker and Barter Exchange Transactions) reports the sale of stocks, bonds, mutual funds, and other securities.

Here's where you enter or import your 1099-B in TurboTax:

1. Open (continue) your return if it's not already open.
2. In TurboTax, search for "1099-B" or "1099B" (lower-case also works) and then select the "Jump to" link in the search results.
3. Answer Yes to Did you sell any investments in 2017?
   • If you see Here's the investment sales info we have so far, select Add More Sales.
   • If you're in Free Edition or Online Deluxe, follow the instructions to upgrade to Premier.
4. Answer Yes to Did you get a 1099-B or brokerage statement for these sales?
5. When you get to Choose your bank or brokerage or Let Us Enter Your Investment Sale Info, choose how you want to enter your 1099-B (import or type it in yourself).
6. Follow the onscreen instructions.

Related Information:

• Where is Form 8949?

[ed8]

I did this for a sale of some VCADX, and then TurboTax reduced my refund. It appears that TurboTax does not handle tax exempt bond funds properly.

[ed8]

I think the dividends accrue tax free. However, when you sell your bond (or bond fund), it appears to be a fully taxable event?

"While the interest income is usually tax-exempt for municipal bonds, capital gains realized from selling a bond are subject to federal and state taxes. The short-term or long-term capital gain, or loss, on a bond sale, is the difference between the selling price of the bond and the original purchase price of the bond."

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