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Level 3
posted Mar 16, 2021 1:04:51 AM

Is This A Valid Work Around for the $10,000,000 Limitation?

There is a limit of a maximum of $10,000,000 I can input into investment proceeds and costs.

 

I found someone online mentioning this workaround (I don't know if I should share links here so I am attaching the screenshot).

 

Would it work? 

 

Thanks.

 

 

 

0 4 511
2 Best answers
Expert Alumni
Mar 16, 2021 6:00:41 AM

If you have transactions that exceed the $10,000,000 entry limit the preferred solution is to split the amount.

 

Example:  You have a $18,000,000 sale, and your cost basis is $12,000,000.

 

Split this entry into two parts.  Enter $9,000,000 for the sale twice, and $6,000,000 for the cost basis twice.

 

This works for the IRS because they are only concerned with matching the total.

Expert Alumni
Mar 16, 2021 9:17:05 AM

Yes, you will be able to split it multiple time.  The IRS will match to the totals.

 

However, always keep documentation that shows what you did.

 

If you have a copy of the 1099-B you can document it directly on the form.  This will confirm your entries if they are ever questioned.

4 Replies
Expert Alumni
Mar 16, 2021 6:00:41 AM

If you have transactions that exceed the $10,000,000 entry limit the preferred solution is to split the amount.

 

Example:  You have a $18,000,000 sale, and your cost basis is $12,000,000.

 

Split this entry into two parts.  Enter $9,000,000 for the sale twice, and $6,000,000 for the cost basis twice.

 

This works for the IRS because they are only concerned with matching the total.

Level 3
Mar 16, 2021 9:04:35 AM

Does Turbotax limit the maximum number of times I can split the number?

 

I think I need to split it into tens of them. Would it work?

 

Thanks.

 

Expert Alumni
Mar 16, 2021 9:17:05 AM

Yes, you will be able to split it multiple time.  The IRS will match to the totals.

 

However, always keep documentation that shows what you did.

 

If you have a copy of the 1099-B you can document it directly on the form.  This will confirm your entries if they are ever questioned.

Level 3
Mar 20, 2021 10:21:40 AM

Great info.

Thank you.