To enter personal property (or inherited property that is considered personal property) on Schedule D (Form 1040) Capital Gains and Losses:
When you are going through the Q&A for Form 1099-B Proceeds From Broker and Barter Exchange Transactions, if you select Adjustment Code "L," the amounts in the Gain or (loss) column on Schedule D will be zero (0) instead of negative (as is appropriate since losses on personal property are not deductible).
To reach that screen in your TaxAct® return:
- From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
- Click Investment Income in the Federal Quick Q&A Topics menu to expand, click Gain or loss on the sale of investments to expand, then click Capital gain or loss (Form 1099-B).
- Click + Add Form 1099-B to create a new copy of the form or click Edit to review a form already created.
- Click Quick Entry to scroll down to answer all applicable questions or click Step-by-Step Guidance to proceed with the program interview questions.
- On the screen titled Investment Sales - Adjustment Code(s), select "L - Other Non-Deductible Loss (including Personal Loss)" from the Other adjustment code drop-down, then click Continue.
- On the screen titled Investment Sales - Adjustment Amount, enter or verify the loss Adjustment amount, then click Continue.
Note. If the inherited property is not considered to be "personal use" property, then you would not select Adjustment Code "L" to ensure the loss would still carry to Form 1040 U.S. Individual Income Tax Return.
Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.