Form 1099-b, box 1F, turbotax will not accept F as a code

[untuit]

It's been a while since I needed to enter info for stock transactions. One part has me stymied. Form 1099-b from my brokerage has an amount in box 1F, "Accrued Market Discount". TurboxTax (home and business) has a checkbox with "I need to enter amounts from box 1F, box 1G or other.

If I check that it opens

Total Adjustments to gain or loss
List all adjustment codes

In the adjustment code box the hover lists many supported codes : B, C, D, E, L, M, N, O, Q, R, S, T, W, X

So, F is not supported, even though it's specifically mentione at the "I need to enter..." section? And it errors if I try to submit with F.

Do I skip entering the amount listed on the 1099-b?

[MarilynG1]

Enter the amount from Box 1f as a negative number in the Total adjustments to gain (or loss) and Code D as the adjustment code.

Code D lets the IRS know the gain is being adjusted for an accrued market discount. The adjustment amount will be reported as interest income on your tax return.

If it does not carry to Schedule B automatically, you will have to carry it over by entering the amount in the Capital Gains Adjustments Worksheet in Forms mode. The Accrued interest to schedule B in Part IV should be highlighted. Enter the adjustment amount here.

What is happening is that you are recognizing less of a gain on this sale because a portion of the gain is being reported as interest.

@untuit 

[untuit]

Thank you MarilynG1, I would have never come up with that <g>.

before I implemented what you described (or tried to) the summary for the brokerage said

gross proceeds 100000 gain/loss 200 (numbers made up)

afterwards it is

gross proceeds 100000 gain/loss 0

Does that sound right?

Why doesn't ttax allow me to enter the numbers as they're presented on the brokerage statement? Is this just an error in ttax? Many thanks

[GeorgeM777]

Yes, if you were just reporting the accrued market discount.  We assume this transaction relates to a bond that has matured and for which you purchased at a discount to the face value.   In this type of scenario, the accrued market discount is taxed as interest income and not capital gain. Therefore, your capital gain should be zero.  

To follow-up on the post from @MarilynG1, you will need to report the interest income on Schedule B and to report this interest income, you will need to go into Forms mode.  And then follow the instructions as provided by @MarilynG1.  

@untuit 

[untuit]

Hi George and Marilyn

I just ran into the issue that I think George is pointing at - when checking federal for omissions, it brings up Part IV or 1099-B, asking for an amount for "Accrued interest to Sch B".

It's totally confusing to me; but I don't have to understand it like you do, I only need to know what value to put in there.

What I did in my attempt to follow Marilyn's advice on the original guided walk through in ttax was to select code D and enter the 1f amount as a negative value. For this new entry, "Accrued interest to Sch B", all I found so far here re advice makes me think I need to put the same value in as a positive amount. So if in the walkthrough I chose D and -200, here I'd enter 200. Is that correct?

[MarilynG1]

Yes, on the Capital Gain/Loss Worksheet, Part IV, Interest to Schedule B, enter 200 as a positive number.  That's it!

You should see on Form 8949, Cap Gain/Loss $0, and $200 interest on Schedule B

@untuit 

[untuit]

Appreciate your reply!