You asked I sold my stock in a privately held Company under a purchase agreement and did not receive any tax form. Were do I report this long term gain?

[JohnB5677]

The basic qway to enter the sale of stock, even without a tax form is:

1. Open (continue) your return if it isn't already open.
2. Income & Expenses
3. Scroll to Stocks, Mutual Funds, Bonds, Other
4. Answer Yes to Did you sell stocks, mutual funds, bonds, or other investments in 2020?
   • If you see Here's the info we have for these investment sales, select Add More Sales.
5. Answer Yes to Did you get a 1099-B or brokerage statement for these sales?
6. At Let's get your tax info, choose how you want to enter your 1099-B (import or type it in yourself).
7. Follow the instructions.

HOWEVER:

Private company shares held for at least five years that are considered qualified small-business stock (QSB) may be eligible for an income exclusion of up to $10 million or 10 times their cost basis.

For the stock to qualify, the company must not have gross assets valued at over $50 million when it issued you the shares.

For more details on both the rollover deferral and the 100% gain exclusion strategies for QSB sales, see a related article on myStockOptions.com, a website featuring expertise on tax and financial planning for all types of stock compensation.

[Swissy]

How do you enter the proceeds from a stock sale in a privately held stock and did not receive a 1099 B  (which you don't because those are for brokerages - right?) I tried to add Form 8949; however, Schedule D says those forms are automatically added based on the Schedule D worksheet input. I can't seem to find the correct input combination to allow me to add Form 8949. What am I missing? This is significant because the Company reported the gain from the stock sale on a W-2 while the commission cost for selling the stock needs to be deducted. Can you help?

[JohnB5677]

To enter the sale of stock in a privately owned business you will need Desktop TurboTax Premier of higher.

Follow these steps while adding the sale of a stock

1. Add a sale
2. No you did not get a 1099-B
3. I'll enter one sale at a time
4. Enter the sale of the small business stock
5. There should not be any less common items
6. No this was not sale of employee stock
7. Check the box The gain (or Loss) from this sale is for special treatment because its from Qualified Small Business Stock
8. Qualified Small Business Stock eligible for exclusion from Gain
9. You will have to answer the next questions yourself
10. Continue to the end of the section

Only certain types of companies fall under the category of a QSB. Firms in the technology, retail, wholesale, and manufacturing sectors are eligible as QSBs, while those in the hospitality industry, personal services, the financial sector, farming, and mining are not.

A qualified small business stock (QSBS) is any stock acquired from a QSB after Aug. 10, 1993. Under Section 1202, the capital gains from qualified small businesses are exempt from federal taxes. 

[kt575]

Would there be any difference in how you enter the long term gain if the sale was for employee stock in a privately help company?

[ThomasM125]

If you acquired employee stock at a discount, the discount should be taxable as ordinary income as opposed to capital gain income typically when you sell the shares. It should be reported as such on your W-2 form as an addition to wages in box 1. When you report the gain on sale of the stock, you need to increase the cost basis of the shares to include the ordinary income from the discount. When you enter the stock sale in TurboTax, you have an option to indicate that it is employee stock and the program will help you determine the correct amounts to enter.