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Exclusion of Gain on Qualified Small Business (QSB) Stock

To enter the information for your QSB gain and exclusion:

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click the menu icon in the upper left-hand corner, then select Federal
  2. Click Investment Income in the Federal Quick Q&A Topics menu to expand the category and then click Gain or loss on sale of investments
  3. Click Capital gain or loss (Form 1099-B)
  4. Click +Add Form 1099-B to create a new copy of the form or click Review to review a form already created
  5. The program will proceed with the interview questions for you to enter or review the appropriate information
  6. When you get to the screen titled Investment Sales - Adjustment Codes, select Code Q-Qualified small business stock exclusion from the drop-down menu. On the following screen, please enter the adjustment amount.

The TaxAct program will automatically transfer this amount and enter it as a positive number, per the instructions above, on the 28% Rate Gain Worksheet. You are responsible for verifying this amount. You can do so as follows:

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click the menu icon in the upper left-hand corner, then select Federal
  2. Click Investment Income in the Federal Quick Q&A Topics menu to expand the category and then click Gain or loss on sale of investments
  3. Click Collectibles gain or (loss) (28% Rate Gain Worksheet)
  4. Verify that the correct amount has been entered for the field Section 1202 exclusion reported on Form 8949

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