Question

Why does Turbo Tax show long term capital gain on a short term transaction

Forum|Forum|4 years ago
February 9, 2022
1 reply
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Investment was in a Limited Maturity Bond Fund (Mutual Fund) for less than one year. 1099-B shows a gain which is reported by Turbo Tax on Schedule D, Line 7. But then Turbo Tax shows a long term gain on Lines 13 and 15 and adds Lines 7 and 15 and reports that amount on Line 16. No where on the 1099-B form does it indicate a long term gain and this investment was less than one year. Any idea of how Turbo Tax would come up with a long term gain on a short term investment?

Capital Gains

R

RaifH

Line 13 on Schedule D is not for long-term capital gains but for capital gains distributions. These are usually referred to as qualified dividends on a 1099-DIV and are taxed at the same rate as long-term capital gains. The gain or loss from the sale should be reported, as you say, as a short-term capital gain or loss.

J

JimO2Author

Thank you. Yes, it appears they added together the capital gains distribution from other investments which total the amount reported on Schedule D, Line 13 and 15.