How do I know if I am eligible for section 1202 exclusion?

Forum|Forum|2 years ago
September 21, 2023
3 replies
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When I reporting 1099DIV, TT keep asking :

Which exclusion percentage do you see on your statement? 50, 60, 75, 100% ?

How do I know if I am qualified or where on the 1099 form / statement indicates about section 1202?

Thank you for your answers in advance.

Best answer by Mike9241

is there an amount on 2c of the 1099div. if it's zero delete the entry because that code section does not apply. If it's not zero we can't answer your question directly

sec 1202 says a portion of the gain from sale of Qualified Small Business Stock (QSBS) reported on 2c is excludable if the stock was held more than 5 years

the exclusion %

acquired 8/11/93 - 2/17/09 50%

acquired 2/18/09 - 9/27/10 75%

acquired after 9/27/10 100%

that code section also provides that the gain can be rolled into another QSBS if the stock was held over 6 months and done with 60 days of sale

Mike9241Answer

is there an amount on 2c of the 1099div. if it's zero delete the entry because that code section does not apply. If it's not zero we can't answer your question directly

sec 1202 says a portion of the gain from sale of Qualified Small Business Stock (QSBS) reported on 2c is excludable if the stock was held more than 5 years

the exclusion %

acquired 8/11/93 - 2/17/09 50%

acquired 2/18/09 - 9/27/10 75%

acquired after 9/27/10 100%

that code section also provides that the gain can be rolled into another QSBS if the stock was held over 6 months and done with 60 days of sale

KikiAuthor

Employee

Mike9241, Thank you very much for your reply. All my 1099DIV, 2c is $0. I am glad that I don't have to worry about it. Thank you for your time again.

jrb816

I have been following this thread because I am in a loop using TurboTax. Currently I keep getting the message about the percentages for exclusion also and it will not let me go further and I went back and put zeros in from reading the other messages and I’ve even got out and got back in and started over… I am frustrated and confused at the moment as to what to do next

I looked back and my documents last year was exactly the same basically and I do not remember having any issues.
thank you for any help

charles_goodwin

I'm stuck in the same loop. 2c has $0, but the online app keeps asking for the exclusion regardless if I add the 0 manually or not. 1099DIV continues to say Needs Review.

charles_goodwin

OH! I figured it out. Put 0.00 in the 3c box, then DON'T click anything when it asks for the exclusion. Just hit continue with NO boxes checked.

jrb816

I ended up entering all of my information manually, I had imported the info from the financial institution, and I did change those as people indicated to put zero in that box, but it still was not letting me go any further, so I just started from scratch and entered it myself And everything went OK then… first time I’ve ever had any issue with any of that so it was a bit frustrating, I’m so glad I found the responses here as it helped tremendously