How do I know if I am eligible for section 1202 exclusion?

[Kiki]

When I reporting 1099DIV, TT keep asking :   

Which exclusion percentage do you see on your statement?   50, 60, 75, 100% ?

How do I know if I am qualified or where on the 1099 form / statement indicates about section 1202?

Thank you for your answers in advance.

 

[Mike9241 · Accepted solution]

is there an amount on 2c of the 1099div. if it's zero delete the entry because that code section does not apply. If it's not zero we can't answer your question directly

sec 1202 says a portion of the gain from sale of Qualified Small Business Stock (QSBS) reported on 2c is excludable if the stock was held more than 5 years

the exclusion %

acquired 8/11/93 - 2/17/09 50%

acquired 2/18/09 - 9/27/10 75%

acquired after 9/27/10 100% 

that code section also provides that the gain can be rolled into another QSBS if the stock was held over 6 months and done with 60 days of sale 

[Kiki]

Mike9241,  Thank you very much for your reply.  All my 1099DIV, 2c is $0.  I am glad that I don't have to worry about it.  Thank you for your time again.

[richard_crimi]

"If it's zero, delete the entry.". 

How does one do that?  There are only options to select one these: 50%, 60%, 75% or 100%.  I have $0.00 in Box 2c.

[AbrahamT]

Just to clarify, are you on a desktop version or on the online verson?  Also, where are you seeing this choice of selecting the 

percentage. If nothing is showing in Box C of the 1099DIV, then don't enter in anything.

[mursingeagle]

The problem the intuit program pulling over the tax forms and it leaves the 2c box blank. Not zeros (0.00) but literally blank. When you proceed forward it tells you there is an problem and you need to select the percentage as noted above in comments.

You must now go back in the tax form and literally put $0.00 (if thats accurate) in the form to get past this step.

Hope this helps.

[AnnetteB6]

A couple more follow up questions, trying to clarify the situation.  When you say the problem is the 'program pulling over the tax forms', do you mean that you are importing the Form 1099-DIV from a financial institution?

Also, where is the error message generated?  Is it during the review process, or does it show up right away while you are working through the dividends section?

Thank you for any additional information you can provide.

@richard_crimi 

@mursingeagle 

[mursingeagle]

Yes. It was imported through Vanguard using the TurboTax ability to link my account. 

no error message generated. It allowed you to go two or three steps further into the process before it asked you what percent to apply (see main question). 

I had to go back and review the imported information to find out that the system left that box blank and didn’t put $0.00 as it should have. 

[AbrahamT]

Ok, then just put in the 0.00. It anyway pulls from Vanguard with a blank amount indicating that there was no gain from the sale of QSBS that required to be taxed. Thus, there was no amount to be excluded from it.

[jrb816]

I have been following this thread because I am in a loop using TurboTax. Currently I keep getting the message about the percentages for exclusion also and it will not let me go further and I went back and put zeros in from reading the other messages and I’ve even got out and got back in and started over… I am frustrated and confused at the moment as to what to do next 

I looked back and my documents last year was exactly the same basically and I do not remember having any issues. 
thank you for any help

[charles_goodwin]

I'm stuck in the same loop. 2c has $0, but the online app keeps asking for the exclusion regardless if I add the 0 manually or not. 1099DIV continues to say Needs Review.

[charles_goodwin · Accepted solution]

OH! I figured it out. Put 0.00 in the 3c box, then DON'T click anything when it asks for the exclusion. Just hit continue with NO boxes checked.

[jrb816]

I ended up entering all of my information manually, I had imported the info from the financial institution, and I did change those as people indicated to put zero in that box, but it still was not letting me go any further, so I just started from scratch and entered it myself And everything went OK then… first time I’ve ever had any issue with any of that so it was a bit frustrating, I’m so glad I found the responses here as it helped tremendously