In the 1099-B form, there is an amount in Box 1d due to Return of Principal. This option is not available in the "What type of investment did you sell?" and "How did you receive this investment?" under the Sales Info section in the Turbo Tax. Can anyone help? Thanks.
If the option for Return of Principal is not available under "What type of investment did you sell?" then choose "Other".
To answer the "How did you receive this investment?" How was it acquired, did you purchase it, did you inherit it, was it a gift.
Unfortunately, there is no "Other" to choose from.
The Learn More page has "Other" but the form does not have such a selection. The other four selections, "Second Home", "Collectibles", "Land" and "Personal items" are also missing. Could be a bug.
Are you using TurboTax Online or a desktop version? When I go into the screen to enter a transaction under sales types I get this list and the last one on the list is other:
If you have this entered, you might want to try and delete the entry and start over. If you still do not get this list, then you might want to contact TurboTax Product Support.
A return of principal is not a taxable transaction. These come from nondividend distributions and reduce your basis in the stock. You may leave them off your tax return entirely as long as you still have a basis in the underlying stock.
When you sell the stock in the future, your cost basis will be reduced because of the return of principal which means your gain will be larger (or loss smaller) on the sale.