How do I handle a stock sale with both LT and ST amounts (and different basis) in TurboTax?
The broker will breakdown the sales into ST & LT on the 1099-B based on the time you held the stock after the distribution. Each share of stock will have a cost basis that you have already paid taxes on it in the year of distribution. One share of stock sold cannot be both short and long term at the same time(or broken out by percentages).
So say you have 100 shares in company stock to move and you originally bought 10 shares (@$10 each ) and are taxed on those 10 shares at distribution (on the 1099-R) that means you now have 100 shares worth $1 each. So the cost basis in all those shares are $1 each.
So ... if you have 100 shares and you sell 10 before a year has passed then all 10 shares are considered short term sales. Then any stocks sold after one year are long term sales. If you broker doesn't break down the sales for you then you will need to do the math and enter the sales into the program manually.
