topic Why does Turbo Tax show long term capital gain on a short term transaction in Investors & landlords

Why does Turbo Tax show long term capital gain on a short term transaction

JimO2 — Wed, 09 Feb 2022 18:08:58 GMT

Investment was in a Limited Maturity Bond Fund (Mutual Fund) for less than one year. 1099-B shows a gain which is reported by Turbo Tax on Schedule D, Line 7. But then Turbo Tax shows a long term gain on Lines 13 and 15 and adds Lines 7 and 15 and reports that amount on Line 16. No where on the 1099-B form does it indicate a long term gain and this investment was less than one year. Any idea of how Turbo Tax would come up with a long term gain on a short term investment?

Re: Why does Turbo Tax show long term capital gain on a short term transaction

RaifH — Wed, 09 Feb 2022 18:58:32 GMT

Line 13 on Schedule D is not for long-term capital gains but for capital gains distributions. These are usually referred to as qualified dividends on a 1099-DIV and are taxed at the same rate as long-term capital gains. The gain or loss from the sale should be reported, as you say, as a short-term capital gain or loss.

Re: Why does Turbo Tax show long term capital gain on a short term transaction

JimO2 — Wed, 09 Feb 2022 20:25:57 GMT

Thank you. Yes, it appears they added together the capital gains distribution from other investments which total the amount reported on Schedule D, Line 13 and 15.