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How do I report ordinary income or ordinary lossess in TurboTax? Note this is not interest or dividends or anything from the options provided.

alexandra_tt — Mon, 03 Jun 2019 17:19:57 GMT

I have some foreign investment accounts. I'm doing mark-to-market and the form says to include the amount as ordinary income on my tax return. Where is the section for ordinary income?

Are you a day trader? For what purpose is the Mark to mar...

Coleen3 — Mon, 03 Jun 2019 17:19:58 GMT

Are you a day trader? For what purpose is the Mark to market?

I am not a day trader. Just regular person with a foreign...

alexandra_tt — Mon, 03 Jun 2019 17:19:59 GMT

I am not a day trader. Just regular person with a foreign investment account. It's a PFIC so I have to do mark to market on form 8621

The Mark-to-Market Election Traders can choose to use the...

Coleen3 — Mon, 03 Jun 2019 17:20:00 GMT

The Mark-to-Market Election

Traders can choose to use the mark-to-market rules, investors can't. If a trader doesn't make a valid mark-to-market election under section 475(f), then he or she must treat the gains and losses from sales of securities as capital gains and losses and report the sales on Form 1040, Schedule D (PDF), Capital Gains and Losses and on Form 8949 (PDF), Sales and Other Dispositions of Capital Assets, as appropriate. When reporting on Schedule D, both the limitations on capital losses and the wash sales rules continue to apply. However, if a trader makes a timely mark-to-market election, then he or she can treat the gains and losses from sales of securities as ordinary gains and losses (except for securities held for investment - see above) that must be reported on Part II of Form 4797 (PDF), Sales of Business Property. Neither the limitations on capital losses nor the wash sale rules apply to traders using the mark-to-market method of accounting.

Hi, I am a regular investor, see form 8621: https://www.irs.gov/forms-pubs/about-form-8621-return-by-a-shareholder-of-a-passive-foreign-investment-company-or-qualified-electing-fund">https://www.irs.gov/forms-pubs/about-form-8621-return-by-a-shareholder-of-a-passive-foreign-investment-company-or-qualified-electing-fund</a> I'm afraid your answer won't help as I have no Business Property.

removed

Coleen3 — Mon, 03 Jun 2019 17:20:02 GMT

removed

TurboTax does not support Form 8621. You would have to fi...

Coleen3 — Mon, 03 Jun 2019 17:20:03 GMT

TurboTax does not support Form 8621. You would have to fill it out by hand and and mail in the return. Line 5 has c) Section 1296 (Mark to Market)
Any amount included in gross income under subsection (a)(1), and any gain on the sale or other disposition of marketable stock in a passive foreign investment company (with respect to which an election under this section is in effect), shall be treated as ordinary income.

(B)  Loss Any—
(i)   amount allowed as a deduction under subsection (a)(2), and

(ii)  loss on the sale or other disposition of marketable stock in a passive foreign investment company (with respect to which an election under this section is in effect) to the extent that the amount of such loss does not exceed the unreversed inclusions with respect to such stock,

shall be treated as an ordinary loss. The amount so treated shall be treated as a deduction allowable in computing adjusted gross income.

<a rel="nofollow" target="_blank" href="https://www.law.cornell.edu/uscode/text/26/1296">https://www.law.cornell.edu/uscode/text/26/1296</a>

Exactly! So my question is, where do I input *in TurboTax...

alexandra_tt — Mon, 03 Jun 2019 17:20:04 GMT

Exactly! So my question is, where do I input *in TurboTax* those ordinary input or loss?

Line 21.Other income.

Coleen3 — Tue, 10 Mar 2020 20:34:30 GMT

Line 21.Other income. (Other Income Line in 2019 is Line 7a)

That helped! Then I found these instructions based on "li...

alexandra_tt — Tue, 10 Mar 2020 20:34:02 GMT

That helped! Then I found these instructions based on "line 21": You can report it as other income on Form 1040 line 21. Here's how to enter it in TurboTax.

·         Click the Federal Taxes tab ( Personal in the Home & Business version)

·         Click Wages & Income. (Personal income in the H & B version)

·         Click "I'll choose what I work on."

·         On the screen "Your 2015 Income Summary," scroll all the way down to the last section, "Less Common Income."

·         Click the Start or Update button for the last topic, "Miscellaneous Income, 1099-A, 1099-C."

·         On the next screen, "Let's Work on Any Miscellaneous Income," scroll down and click the Start or Update button for the last topic, "Other reportable income."

·         The next screen asks, "Did you receive any other taxable income." Click Yes.

·         On the next screen, "Other Taxable Income," enter a description and the amount. Click Continue.

·         On the next screen click Done.

The income will be reported on Form 1040 line 21 with the description that you entered.

Re: That helped! Then I found these instructions based on "li...

LalG — Sun, 07 Mar 2021 21:12:09 GMT

In 2020 Premier version, when I entered Section 1296 (PIFIC form 8621) LOSS under 1099-Misc - Turbo Tax generates a Schedule C and enters it there. but this is NOT a business!

Mark-to-Market gain/loss is supposed to be entered under ordinary Income. I can only enter it as a loss if I create a 1099-NEC which then correctly enters is as a loss in Schedule 1 Line 8. How can I edit the entry "non employee compensation from 1099-NEC" to "Form 8621 Section 1296?

Re: That helped! Then I found these instructions based on "li...

Irene2805 — Mon, 08 Mar 2021 16:51:27 GMT

You can enter the 1099-MISC in TurboTax as Other Common Income, which is reported on line 8 of 1040 Schedule 1 and will not generate Schedule C or SE tax. Please use the following steps:

Click on Federal > Wages & Income.
Scroll down to the Other Common Income section.
Click on the Start/Revisit box next Form 1099-MISC.
On the screen Did you get a 1099-MISC? click on the Yes button.
On the next screen, Let's get the info from your 1099-MISC, enter the information from the 1099-MISC.
On the following screens, answer the following questions:
- Did it involve work that's like your main job? No.
- You got it in 2020
- No, it didn't involve an intent to earn money

7. Continue through the rest of the interview screens. The income will appear as Other Income.

@LalG

Re: That helped! Then I found these instructions based on "li...

LalG — Tue, 16 Mar 2021 17:26:44 GMT

Many thanks for the instructions. This only works if reporting an income. I have a LOSS and 1099-MISC does not let me enter negative number. So far only way is to create a NEC but i cannot edit the entry under Sch 1, Line 8. I want to edit the TT generated text "from Non-employee compensation" to enter Section 1296 (Form 8621).

Re: That helped! Then I found these instructions based on "li...

DaveF1006 — Tue, 16 Mar 2021 22:00:44 GMT

It depends. Try entering the 1099-Misc in this manner.

Go to federal>income and expenses>all income>>show more
Less Common Income> Start
Miscellaneous Income,>start
Other reportable income>start
Next screen asks Any Other Taxable Income>yes
The next screen will allow you to report the income with a brief explanation.
For the explanation, you can make reference to the "1099-MISC-non-employee income." and enter the negative amount with a minus sign and amount.

Re: That helped! Then I found these instructions based on "li...

LalG — Thu, 01 Apr 2021 13:51:14 GMT

Best Answer - lets you add the description and the NEGATIVE amount as well

Re: How do I report ordinary income or ordinary lossess in TurboTax? Note this is not interest or dividends or anything from the options provided.

Donatien — Thu, 03 Aug 2023 03:10:44 GMT

Hi,

I am filing 8621 section 1296 MTM election.

This time I have an ordinary loss to report.

It occurs to me that I need to report my section 1296 ordinary loss in schedule 1 line 24 item z. which is then reported in sch1 line 26 and finally on 1040 line 10. (and not line 8 ! )

Is there a way to get there, or should I get the negative amount trick said above and then print and swap a corrected schedule 1? and a corrected 1040 with the loss in line 10 and the actual other income in line 8?

Many thanks

Re: How do I report ordinary income or ordinary lossess in TurboTax? Note this is not interest or dividends or anything from the options provided.

Donatien — Fri, 01 Sep 2023 22:49:05 GMT

does anyone have an idea about this?

many thanks.

Re: How do I report ordinary income or ordinary lossess in TurboTax? Note this is not interest or dividends or anything from the options provided.

Mike9241 — Fri, 01 Sep 2023 23:32:34 GMT

what version of TurboTax are you using?

Re: How do I report ordinary income or ordinary lossess in TurboTax? Note this is not interest or dividends or anything from the options provided.

Donatien — Sat, 02 Sep 2023 06:36:41 GMT

hi,

the current online version

Re: The Mark-to-Market Election Traders can choose to use the...

Stevied3 — Tue, 04 Mar 2025 01:52:56 GMT

I'm about to buy Turbo for the 2024 tax year. I have already made the 475 MTM election for that year. When i download transactions from my broker, does Turbotax allow me to mark these to be loaded into Part 2 of form 4797? (instead of into Sch D...)