hedgeslaw
Level 4

Now that the input sheets have changed, this is how I entered the loss and designated part of it as a 1244 stock ordinary loss.

1. Press F6 for the forms list and type "FB" to goto the Form 1099B-wks (Weird, but start here)

2.  Go down to the Quick Entry Table and enter the company name, the sale date, acquired date, full sales price, cost, enter "F" as the 8949 code, enter $100,000 in the adjmt box for your Sec 1244 Adjmt and enter "S" as the adjustment code.

3. Now, just double click on any of the boxes in which you entered info ... For example, double click on the Date Acquired box.

4. That double click opens the Capital Gains Adjustment Worksheet. Scroll to the bottom of that worksheet (PART IV) and check the box entitled "Check if ordinary gain/loss" and then enter your $100,000 in the box entitled "Sec 1244 Loss Form 4797" in the lower right corner.

5. To verify your work, goto Form 4797 Part II Ordinary Gains and Loss and you will see the entry for your 1244 stock and the $100,000 loss is entered as an ordinary loss. Now goto the Form 8949 and verify the selling price, basis and $100,000 basis adjmt is entered as a long term capital gain (less the $100k)

 

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