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February 11, 2023
Question

Why doesn't Turbotax Deluxe desktop move NUA (1009-R, Box 6) income to Schedule D, Long Term Capital gains?

  • February 11, 2023
  • 2 replies
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2 replies

SantinoD
February 11, 2023

Box 6 on Form 1099-R are Net Unrealized Appreciation (NUA) in Employer's Securities. 

 

Net unrealized appreciation (NUA) is the difference between the original cost basis and the current market value of shares of employer stock. When those shares are distributed, ordinary income tax must be paid immediately on the cost basis of the shares of employer stock. So the amount in Box 6 is the basis that is being taxed at your ordinary income rate and should already be included in Box 1 on Form 1099-R. 

 

When those shares are sold, you would then have a transaction to report as a Capital Gain/loss. That information will be provided to you on Form 1099-B with the details of the transaction. 

March 6, 2023

I have an NUA situation as well. Transferred company stock from 401k to brokerage account. inside 401k stock was in a company stock fund but was converted to common stock at transfer. Basis for fund was about 19K but full value of transfer ( about 100K) was reported on 1099-R on both lines 1 and 2A. How do I enter the cost basis for this transfer.

Also, I made a charitable donation of some of the stock. Am I only able to deduct the basis of the stock as opposed to the value of the stock at donation?

 

[Removed PII]

DaveF1006
March 13, 2023

To clarify, was this transferred to a Roth account?

 

Edited 03/13/23} 1:36 PM PST} @bfink0828

 

 

 

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