1099-B confusion

Forum|Forum|6 years ago
February 14, 2020
1 reply
4 views

I was granted 600 RSUs for my company when I started (200 each year for 3 years). The first group of those came to me in 2018, I ended up getting 140 shares after 60 were sold to cover the taxes. Fast forward 18 months, the stock hasn't done well, I sold those shares at an $8,000 loss, however when I enter the data from the 1099-B it says its a "Long Term – Noncovered Securities" meaning I owe more money, that doesn't make sense. I feel like the form is wrong, should I enter long term not reported?

thanks

DavidS127

Level 13

If your 1099-B doesn't include the "cost basis" on the form, you will need to enter the cost basis in order to correctly calculate the gain or loss on the sale.

For "noncovered securities" the cost basis is not reported by the broker, and you are responsible for entering that number. When it is correctly entered, you should have a loss on the sale (assuming the proceeds were less than your "cost basis").

Sometimes the cost basis will be reported by your broker in the supplemental schedules attached to the 1099-B . If not, you will need to review the information provided by your company to figure out your "cost basis" in the RSU shares you sold.

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mwinski

Level 2

How is cost basis figured? I have two sections on my 1099-B, and one has all the info, and the other says it is non-covered securities transactions, with no cost basis reported.

CatinaT1

Level 15

The cost basis is your original purchase price. Brokerages used to not have to track this information, it was solely on the taxpayer to track so they could figure if there was a gain or loss upon sale.

Several years ago, it became required for the Brokerages to report the basis.

An easy way to think about it is Covered Transactions are covered by the new requirement and will show the basis. Non-Covered Transactions are not-covered by the requirement to report the basis.

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