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ETRADE 1099-B Acquired Date (box 1b) not showing correct date for gifted stock. What date should be used for Form 8949's Acquired Date (box 1b)?


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FORM 1099-B 2019 From ETRADE:

 

Covered Long−Term Gains or Losses on Gross Proceeds
Report on Form 8949, Part II with Box D checked
Box 6: Gross Proceeds
Box 5: Box Not Checked (Covered Security)
Box 12: Basis Reported to the IRS
Box 2: Type of Gain or Loss − Long−Term

The 1099−B data referenced by a Box Number is reported to the IRS.

 

VANGUARD S&P 500 ETF:
Quantity Sold: 20.0
Date Acquired (Box 1b): 10/18/2018
Date Sold or Disposed (Box 1c): 12/30/2019
Proceeds (Box 1d): $5,901.07
Cost or Other Basis (Box1e): $5,901.07
Gain/Loss Amount: $0.00

 

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FORM 8949 Page 2:

 

Part II - Long-Term. Transactions involving capital assets you held more than 1 year are generally long-term

Checked/selected: (D) Long-term transactions reported on Form(s) 1099-B showing basis was reported to the IRS

 

(a) Description of property : 20 shares of VANGUARD S&P 500 ETF (VOO)
(b) Date acquired (Mo., day, yr.) : ? (See question)
(c) Date sold or disposed of (Mo., day, yr.) : 12/30/2019
(d) Proceeds (sales price) : $5,901.07
(e) Cost or other basis : $5,901.07

 

Adjustment, if any, to gain or loss. If you enter an amount in column (g), enter a code in column (f). See the separate instructions.
(f) Code(s) from instructions: B
(g) Amount of adjustment: $776.47

(h) Gain or (loss). Subtract (e) from (d) and combine the result with column (g): $776.47

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Some background...

My elderly father has several serious health conditions, so we are doing some Medi-Cal long term care planning. Part of this involved him gifting me 20 shares of $VOO (VANGUARD S&P 500 ETF).

 

-He bought these 20 shares on 10/18/2018 for a cost basis of $5,124.60.

 

-He called E-Trade on 11/26/2019 to request the transfer, and the transfer completed the next day, 11/27/2019, to my E-Trade account (we both have our own E-Trade brokerage accounts). We're assuming 11/27/19 is the "Date of Delivery" for this gift. He will be reporting this gift on his taxes.

 

-On 12/30/2019, I sold all 20 shares, then immediately rebought 20 shares (same day) to harvest some gains for 2019. $5,901.07 in proceeds, for a $776.47 long term capital gain.

 


There are some mistakes for this sale's listing on my E-Trade 1099-B, as can be seen in the excerpt included at the top of this post.

 

-Proceeds (Box 1d) for the sale are correct, showing $5,901.07.

 

-Cost Basis (Box 1e) is wrong. It shows $5,901.07 (same amount as proceeds from sale), but should show $5,124.60 (father's cost basis).

 

-It correctly has the $VOO sale listed in the long term capital gains section.

 

-It incorrectly shows $0 gains because of the wrong Box 1e cost basis. Gains should be $5,901.07 - $5,124.60 = $776.47.

 

-On Form 8949, I'm using "CODE B" to adjust all of this, so I think this will take care of the wrong cost basis/gains.

 


The problem:

The E-Trade 1099-B $VOO's Date Acquired (Box 1b) doesn't show date it was gifted - it shows 10/18/2018 (date purchased by father). I'm not sure how to handle this on Form 8949.

 

My understanding is for Form 8949 "Date Acquired (b)", I am supposed to use the date the stock was gifted (11/27/2019) , not the date my father purchased the stock (10/18/2018). The problem is if I use the gift date on the 8949, it will conflict with the information E-Trade gave the IRS on the 1099-B.

 

https://www.moneycrashers.com/tax-form-8949-instructions/
"Date Acquired. This is the date that you purchased or were given the property. "

 

Also, if I use the 11/27/2019 gift date, my sale of $VOO might look like a short term capital gain, because I sold it one month after the gift date. Form 8949 doesn't have any place to convey to the IRS that the acquired date (b) represents a gift date, not a purchase date. My concern is this might raise a red flag with the IRS.

 

As a side note, I am filing all of this with a 1040-X, so it all has to be by mail.


Question : For Form 8949, what date should be used for $VOO's "Date Acquired (b)"?

-Should I be consistent with the 1099-B, use "10/18/2018", and make a note right below it that I was gifted this stock on 11/27/2019?

 

-Or, should I use 11/27/2019 for "Date Acquired (b)", make a note that this is the date it was gifted, and that the 1099-B date is wrong/is the date my father purchased the stock?

 

-Is there any supporting documentation I would have to mail in with the 8949 (I'm assuming I don't have to mail in my E-Trade 1099-B, as they already have this electronically)?


Thank you.