How to make Stock from K-1 qualify as QSBS

Forum|Forum|2 years ago
January 29, 2024
1 reply
13 views

Hi Everyone, I have a client that received K-1's from an SPV, AngelList that has some QSBS capital gains. Per AngelList, the SPV itself is not QSB, but the underlying portfolio company is section 1202.

I am trying to figure out how to record it. I don't know if it would be a good idea to remove the capital gains from the the K-1 entry and record it directly on Form 8949. Then I can make the stock qualify for section 1202.

Do you guys have a better idea?

Thanks a lot.

This topic has been closed for replies.

Best answer by PhoebeRoberts

Bear in mind that your client has to have owned the K-1 entity for a qualifying holding period, too.

I back it out of the K-1 input and enter it as a separate Sch D transaction, then make some entry (can link the Sch D sometimes, or just make an Other Adjustment to Basis in the K-1 input) to get the K-1 basis right.

PhoebeRoberts

Answer

Intuit Community Champion

Bear in mind that your client has to have owned the K-1 entity for a qualifying holding period, too.

I back it out of the K-1 input and enter it as a separate Sch D transaction, then make some entry (can link the Sch D sometimes, or just make an Other Adjustment to Basis in the K-1 input) to get the K-1 basis right.

X

XavierPAuthor

Level 2

Thanks a million!

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