Private company stock sale

[d27]

I sold all of my shares in a private company in 2024. 3 questions:

1. How do I report the sale in Turbo Tax? As a 1099s or something else? 

2. For Turbo Tax, are these restricted stock units?

3. Part of the sale was a note, but all was paid in 2024. How do I report the interest in Turbo Tax? As a 1099int or something else?

[DavidD66 · Accepted solution]

1.) You report it as if you had a Form 1099-B.  When asked if you received a Form 1099-B, answer No.  

2.) No, your private company shares are NOT Restricted Stock Units (RSUs).

3.) Report it as if you received a Form 1099-INT.

[d27]

For the Form 1099-B, how do I answer: what type of investment did I sell?

[MinhT1]

For type of investment sold, you should choose Stock (non-employee).

[d27]

You say I should choose Stock (non-employee). Should I choose this even though the shares were received as compensation for work while I was an employee? And, what do I put for "How did you receive this investment?"

[ThomasM125 · Accepted solution]

It is possible the stock was restricted stock units (RSU's). That would be the case if they were given to you so that you didn't pay anything for them. If so, you would enter that as the type of stock sold.

If that happened, the value of them should have been included as wage income on your W-2 form in the year you received them. In that case, the cost basis you enter in 2024 upon their sale would be their value when you received them.

You would say you purchased the stock.