When you sell qualified small business stock for a gain, you may be able to postpone paying income tax on the sale if you used the proceeds to purchase other qualified small business stock under section 1045. If you invest the proceeds from the sale of publicly traded securities in an SSBIC, you may be able to roll over, or postpone, the gain on your securities sale, if you qualify. Specialized Small Business Investment Company (SSBIC) If you qualify, you'll see a “Net adjustments to gain.” (See the attached screenshot below. On " What Kind of Small Business Stock?" select the appropriate section 1202 type, click Continue.On " Do Any Special Situations Apply to This Sale?", select " Small business stock" click Continue (See the attached screenshot below.Review Some Basic Info About this Sale, Click Continue.On Choose the type of investment you sold, choose " Stock" (See the attached screenshot below.Click My sale involves one of these uncommon situations.“ If you have additional info about this sale, you can enter it on your own, or we can guide you.”, Select Guide me step-by-step (See the attached screenshot below.If you land on the Summary of All Accounts screen instead, click Edit.On the Did you sell any investments? screen, answer Yes.Click the Jump to 1099-B link in the search results.With your return open, search for 1099-B (upper- or lower case, with or without the dash) in your program's search box.
The excerpt covers opinions and hearsay testimony.Here's how to enter a Qualified small business stock exclusion (Section 1202):Īlthough the below steps involve editing an existing stock sale entry, you may do well to delete the sale and start fresh. Part II of the Article is an excerpt from the Guide. And, to the extent the district court has not been overruled by the appellate court, this law would be the controlling law in the jurisdiction.
Citation to district court opinions makes sense as it is the trial court that is making the evidentiary decision.
The Tax Court has begun citing district court opinions, often from the jurisdiction to which the case would be appealed, and to relevant appellate court opinions to support its evidentiary decisions.
As a corollary to the statutory amendment, there seems to be a new evidentiary trend. The PATH Act changed the statutory language, removing the reference to the District Court for the District of Columbia. It could have meant anything from applying the rules of evidence as adopted by the District of Columbia's District Court, as interpreted by the District of Columbia's District Court, as interpreted by the Circuit Court of Appeals for the District of Columbia, or something else. How the reference to the District Court for the District of Columbia should be interpreted was never certain. Before the PATH ACT, under section 7453, the Tax Court conducted trials in accordance with the rules of evidence applicable in trials without a jury in the District Court for the District of Columbia. The Federal Rules of Evidence establish the guidelines a judge will use to determine what testimony and documents will be admissible in evidence in the Tax Court. The first Part of the Article covers some 2015 legislative changes made by the Protecting Americans from Tax Hikes Act (PATH Act). This Article provides updates discussed in the Guide and an excerpt from the Guide. The American Bar Association Tax Section has recently published the second edition of A Practitioners Guide to Tax Evidence (the "Guide").