No reconciliation for federal/State adjustment to capital gains?

Forum|Forum|1 year ago
April 1, 2025
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The instructions for my state return specifically says a reconciliation must be attached to my return along with a copy of the Schedule D. Why can't I/where can I find that reconciliation?

DavidD66

What state are you filing and needing to reconcile an adjustment to capital gains. Also, where did the adjustment originate?

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KarenLeaAuthor

The state is Mississippi. The adjustment is from Sec 1202 QSBS sale. The state doesn't tax the gain since the sale is of stock of a C corporation in MS. I make the adjustment but it doesn't print a reconciliation page (required) per instructions.

Thanks for any assistance!

DaveF1006

Mississippi generally follows federal tax treatment for capital gains but has state-specific exemptions, such as the Sec 1202 Qualified Small Business Stock (QSBS) sale exemption. Since Mississippi does not tax the gain from the sale of stock in a Mississippi-based C corporation, you correctly made the adjustment.

However, TurboTax does not support filing the filing of the reconciliations page thus you will need to manually attach a statement explaining the adjustment. You will then need to mail the return to Mississippi, as TurboTax won't allow electronic filing when statements are attached.

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