type E listing procedes of sale of stocks previously held at another investment firm. These stocks were from a demutualization and were listed at 0 cost basis, obtained 12/01/2001. When I looked at the form 8949 after importing from invest. firm, I noticed this transaction was listed in the short term catagory. Am I missing something, why the Turbotax has it catagorized different than on my 1099? Are not the capital gains in short term taxed higher than long term?
type E means that the security was held long term but cost basis is not reported to IRS. if you received the stock in 2001 as part of its demutualization then that's the acquisition date so selling in 2020 creates long-term capital gain
code E should automatically make the sale long-term regardless of what actual dates are entered
