Thanks @AmyC / @fanfare / @SusanY1 / @RobertB4444
Since I asked many questions in this thread I will summarize here:
Cost Basis when missing in 1099B, use transaction statement. In my case I actually use my bank account to calculate the fees
Some brokers had horrible 1099B, like computershare in my case that force you to go through the whole history of transaction to calculate the endless fees along the way
Sell-To-Cover is explained perfectly above and had cause the same pain since it wasn't associated with cost basis but even more complex since money never come to my bank account so I have to search my paystubs!!
Spent in this process approximately a week
You're going to have to figure out what you paid for the securities that you sold. You'll need to dig through your records and statements - not including the basis usually means that you purchased the security some time ago. You may also need to contact a prior broker.
The IRS will only accept the basis for your securities with documented proof of the purchase. So you'll need to do the digging.
if stocks are granted, is it true statement that cost basis is stock price at granted time?
Yes, if the stocks were from a grant the cost basis is the stock value on the date of the grant. This was likely included as income on your W-2 at that time, which gives us your basis in the stock. Your W-2 from the year of the stock grant should contain the information that is necessary to prove that basis, should you be asked at a later date.
Thank you. This is what I keep reading, however I can't see anywhere in W2 how to different between cash salary and granted securities, so seems my only best bet is my last paystub, does that make sense?
Yes, that makes perfect sense. If the paystub has more clear information on it for your records, keep that with your tax things for a few years. It's not common for the IRS to ask, but if they do in your case you'll have everything that you need handy to show how you determined your cost basis.
IRS says:
For non-covered securities ( BOX B or E) showing zero (wrong) basis, enter the correct basis yourself.
Use code "B" and put -0- in col (g).
For Box A or D, leave basis as reported, use Code "B" and put an adjustment in col(g).
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I tried this out in an older version of TurboTax, and it complied.
Thank you all, your replied were great help for
Final question. My broker did something called sell-to-cover, which is selling some of my shares to cover the Tax, They report that sale in 1099B as uncovered. This money never goes to me and was withhold by them to pay tax. How this is reported?
Sale to cover taxes is normal. It is a sale of your stocks. Think of it as if you sold the stock and they gave you the money. Then, you gave it to your employer to pay the taxes for you. So, you did get a benefit for selling the taxes.
Report it on your Sch D with any other transactions.
Uncovered means the broker does not know how much you were paid per share. You do, so you need to fill in your basis for the shares sold to cover the taxes. Check your w2 information or ask payroll.
Thanks @AmyC / @fanfare / @SusanY1 / @RobertB4444
Since I asked many questions in this thread I will summarize here:
Cost Basis when missing in 1099B, use transaction statement. In my case I actually use my bank account to calculate the fees
Some brokers had horrible 1099B, like computershare in my case that force you to go through the whole history of transaction to calculate the endless fees along the way
Sell-To-Cover is explained perfectly above and had cause the same pain since it wasn't associated with cost basis but even more complex since money never come to my bank account so I have to search my paystubs!!
Spent in this process approximately a week