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Level 1
posted Apr 15, 2023 3:12:25 PM

Unable to use TurboTax Business (Form 1041) for QSB Stock

I have a Children Trust with QSB Stock that was held for over 5 years, which means any capital gain can be excluded within a limit.

 

I'm using  TurboTax Business 2022 to file Form 1041, as the personal versions of TurboTax cannot be used for Trusts.  

TurboTax Business is NOT allowing me to specify QSBS capital gain exclusion.

 

It's not uncommon to have trusts with QSBS as people give stocks as gift to their children.

 

Even in the Form mode, the Form 8949 is showing error if I try to override it.

 

What can I do to use TurboTax Business for QSBS and capital gain exclusion?

Thanks!

0 5 1091
1 Best answer
Level 15
Apr 15, 2023 5:33:55 PM

 

 

5 Replies
Level 15
Apr 15, 2023 5:33:55 PM

 

 

Level 1
Apr 16, 2023 10:01:47 AM

Thanks Tagteam! It worked! 

Returning Member
Apr 9, 2025 6:22:33 PM

Can you show the solution again.  the link does not work

Expert Alumni
Apr 10, 2025 9:22:04 AM

The sale of Qualified Small Business Stock (QSBS) eligible for the Section 1202 exclusion can be entered in TurboTax Business for Form 1041 using Forms Mode.

 

  1. Open your return and click the Forms icon in the TurboTax header. 
  2. In the list of Forms in My Return on the left, scroll down and look for Schedule D.
  3. Click the form name to open it in the large window. 
  4. If no Schedule D transaction has been entered, use the Open Form icon above the list of forms.
    Search for Schedule D, click the form name, then Open Form.
  5. Scroll down to the Exception Smart Worksheet.
  6. Check the Yes box on Line A.
  7. Enter a description on Line B.
  8. Check "No" on Line B(1).
  9. Enter the sales information under column (b) Long-Term.
  10. TurboTax will calculate the unadjusted Gain on Line 5.
  11. You will need to enter the Section 1202 adjustment on Line 6 as a negative number.
  12. The program will calculate the Adjusted gain on Line 7
  13. Enter "Q" on Line 8.
  14. The transaction will appear on Form 8949 as well as Schedule D. Be sure to attach a copy of the sales confirmation.
  15. When you're finished, click Step-by-Step in the header to return to the main screens.

@Penny20

Returning Member
Apr 10, 2025 5:36:28 PM

Thanks.  unfortunately I only have the premier version