Turbo Tax and LTCG Issue

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blacklab
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Turbo Tax and LTCG Issue

Post by blacklab » Thu Mar 07, 2013 7:14 pm

I have noted a few posts regarding Turbo Tax issues but I believe this is slightly different.

I imported not only dividend data from Vanguard but a stock sale as well from VBS.

The sales date and proceeds were in order and it called for me to input the cost basis and acquisition date (well over one year) as well. This was done but the result looked wrong, as if it did not recognize this as a long term capital gain. After talking with someone at Turbo Tax, they finally acknowledged that something did not look right, and advised me to enter the information manually. This is disconcerting. In my case the amount was significant enough that I would have done this anyway, but I wanted to give a heads-up to others who may just assume the calculation on smaller LTCGs is being handled correctly.

haban01
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Re: Turbo Tax and LTCG Issue

Post by haban01 » Thu Mar 07, 2013 8:46 pm

The fine lady I talked with said they were having issues with Vanguard and importing the 1099 forms and the numbers coming out correct so she also recommended to others a manual download and input of data. She said that this has been an ongoing problem with Vanguard and other tax filers. GLTA!
Eric | | "Stay the Course" | "Press on Regardless"

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Grandpaboys
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Re: Turbo Tax and LTCG Issue

Post by Grandpaboys » Thu Mar 07, 2013 11:47 pm

I take it that the imported data numbers were differant from the 1099 statements you received in the mail?
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blacklab
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Re: Turbo Tax and LTCG Issue

Post by blacklab » Fri Mar 08, 2013 7:32 am

No, that's what is crazy about this. Amount of proceeds was correct, but upon entering an acquired date of more than a year it generated a tax due that was much greater than expected, failing to treat it as a long term gain.

rkhusky
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Re: Turbo Tax and LTCG Issue

Post by rkhusky » Fri Mar 08, 2013 7:57 am

I noticed that Vanguard used average cost basis on my noncovered shares, even though I sold them via specific ID. If I used their numbers my tax would be higher.

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Grandpaboys
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Re: Turbo Tax and LTCG Issue

Post by Grandpaboys » Fri Mar 08, 2013 12:22 pm

So what are we saying, the Software from TT is in error or is the infomation downloaded from Vanguard in error or incomplete???
Good Day | GP

dad2000
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Re: Turbo Tax and LTCG Issue

Post by dad2000 » Fri Mar 08, 2013 12:37 pm

I have a long-term cap gain from a sale with VBS. The first time I imported from Vanguard into TT in February, it was a disaster.

I ended up having to delete all the imports and reimport yesterday. I just checked the sale in TT, and it was characterized as long-term, with the correct calculations.

nomolos
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Re: Turbo Tax and LTCG Issue

Post by nomolos » Fri Mar 08, 2013 12:49 pm

I imported my capital gain information from VBS to TurboTax and manually supplied the cost basis information and dates acquired. All the gains (and losses) were long term.TurboTax treated it all as short term gains which necessitated my having to manually change all of the short term gains to long term gains. Apparently, the dates were ignored by the software.

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blacklab
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Re: Turbo Tax and LTCG Issue

Post by blacklab » Fri Mar 08, 2013 5:32 pm

In my case I was unable to edit even reimported sale to indicate it was long term. Software overrode the date and continued to treat sale as short term. Had to delete the imported sale and manually enter it, which finally did the trick.

jebmke
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Re: Turbo Tax and LTCG Issue

Post by jebmke » Fri Mar 08, 2013 5:36 pm

Grandpaboys wrote:So what are we saying, the Software from TT is in error or is the infomation downloaded from Vanguard in error or incomplete???
This is not unusual this early in the tax season.
When you discover that you are riding a dead horse, the best strategy is to dismount.

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Grandpaboys
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Re: Turbo Tax and LTCG Issue

Post by Grandpaboys » Fri Mar 08, 2013 6:28 pm

I do not buy the "to early in the tax season". Long Term VS Short Term for Capital Gains has been the same forever. I believe we are dealing with the changes made by the IRS for reporting costs and effective dates of purchase. After I downloaded from Vanguard and reviewed each item by clicking the reveiw button(which was kind of neat) the items were then put in the software. When reviewing I could also match to the paper statements received from Vanguard. I also have my own calculations which I match up with the paper statements when received from Vanguard. This is done before I even start with TT. Because of all the new reporting requirements to the IRS it is a good idea to manully fill in Capital Gains and Losses into TT. I did not do this as all my numbers and dates were correct and TT was able to handle it.
Good Day | GP

livesoft
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Re: Turbo Tax and LTCG Issue

Post by livesoft » Fri Mar 08, 2013 7:28 pm

So there seems to be a lesson here:

Folks who are relying on Vanguard and/or TurboTax to report and calculate numbers correctly probably should not be so trusting. That goes for the past, present, and the future. Keep good records. Forever.
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