How can I have a negative basis?

[mvoswhc8364]

Turbotax says I have a negative basis.

[ToddL99]

Please clarify - where does the program say you have a negative basis?

[mvoswhc8364]

When I do the "Your completecheck™ to-do list" and then click Review, it says:

"IRS Rules Don't Allow E-filing for Your Federal Return

"Why? Well, it looks like you have a tax situation in your federal return that makes it ineligible for e-filing.

"Here are the details:

"You have negative cost or other basis on Form 8949, Sales and Other Dispositions of Capital Assets."

I do not know where I have a negative basis on any of my sales.

[ToddL99]

Did the Review screen give you the option of correcting/changing the cost basis?

[mvoswhc8364]

No.  I would not know where to look -- I looked at my 1099s (I have them as pdfs on my computer) and there are no negative bases.

[ToddL99]

The TurboTax programs will not allow you to enter a negative cost basis for a 1099-B - it would appear there is a bad data field in one of your 1099-Bs. 

The only way to see where this error may be coming from is to print out the 8949, which requires you to pay for the program. You just want to pay for and print the form, not file. See the "Print Center option in the left menu of the online program (sample screenshot below)

A printout of the 8949 may indicate which 1099-B is causing the problem. If so, you should delete that 1099-B and re-enter it manually.

If the 8949 does not help identify the 1099-B  causing the problem, then your next option is to remove all the 1099-Bs and re-enter them manually.

See: How do I delete forms in TurboTax Online? 

After deleting the 1099-B(s), log out of the program. When you log back in, use the Delete a Form tool (List of Forms in My Return) to confirm it  (they) has been removed from your return.  

[mvoswhc8364]

The 1099-Bs are PART of the pdf 1099 files I have -- there is also information on dividends, interest, etc.

I did not enter information manually.  It came from the two 1099 pdfs.

I actually had trouble uploading the pdfs -- I did not see how I could enter two of them, only one.  I don't exactly remember how I got the information from the other one entered.  It can't have been doing it manually, except for one part that had only two entries.  Maybe I did discover how to upload both of them.

I did delete them and re-upload more than once -- it did not change the negative basis warning.

As for entering information manually, that would be a MAJOR pain.  There are dozens of sales of stock on each 1099.  Making mistakes entering information would be likely -- besides being a PAIN.

I have thought about trying to file the return with the IRS in spite of the message that tells me I can't -- if I ignore the warning and continue with the form until its end, it offers me ways to pay, and maybe that means I could just file in spite of saying I can't?

[DaveF1006]

It depends. You can try summarizing the transactions, which means you can efile but you would need to send in broker statements along with a transmittal form 8453, which is automatically generated.

According to this Turbo Tax link, here is how to enter summary transactions. 

1. Go to Income. 

2. Select I'll choose what I work on. 

3. Go down to Investment Income. 

4. Click Start or Update by Stocks, Mutual Funds, Bonds, Other. 

5. Select the broker and choose I'll type it in myself.

6. On the Tell us about...screen, select I'll enter a summary for each sales category.

7. You won't have to put the dates of each sale.

8. Once Done, you will be given instructions regarding the 8453 which is automatically generated in your return.

9. You will be able to electronically file but will need to send in a broker statement along with the 8453 to: 

Internal Revenue Service 

Attn:  Shipping and Receiving 0254 

Receipt and Control Branch 

Austin, TX 73344-0254  

[mvoswhc8364]

I paid and looked into some of the TT files and:

I did find where the error is -- in the tax return, under 

Short-Term Capital Gains and Losses

1. Totals for all transactions reported on Form(s) 8949 with Box B checked has a loss of 

   2,399

   which gets copied exactly to the BASIS on the next line:

 Totals for all transactions reported on Form(s) 8949 with Box C checked

 which has a proceed of  3,146, and the proceed and negative basis results in net gain of 5,545.

In addition, when I look at files I can delete, there are listed two of

Schedule B -- Form 1099-INT (WELLS FARGO CLEARING SERVICES, LLC)

and there are Form 8949 (Copy 1, 2, and 3).  And four of:

Form 1099-B Worksheet (Wells Fargo Bank) -- Capital gn (ls) adjustments/other info (Wells Fargo Bank - see attached statement)

I did not delete any of these files.

[mvoswhc8364]

I found that TT had reversed the amounts from the basis and the gain/loss from the original uploaded 1099, for that stock sale.  There was a loss, so the figure that got put in as basis is negative.

When I go back here to the Sales section total for short term sale and not reported to the IRS, the amounts entered there are correct.

The stock in question was a public limited partnership, if that matters.

I do not know how to correct the situation.  I cannot edit 8949s, and correct the error there.

[mvoswhc8364]

The problem seems to have been resolved, though I am not totally sure how.  There was an entry for business sale -- the limited partnership -- which I thought had been entered according to instructions.  Anyway, it is gone now.  I followed TT instructions on setting the basis for the sale to zero, at one point.  Don't remember exactly.

Anyway, it seems to be OK now.

I hate limited partnerships.