The difference is that you must enter the adjusted cost basis and date of acquisition on non-covered (nonreported by the broker) transactions and it is not required on covered (reported by broker) transactions because it was already reported by the broker to IRS on those transactions.
Here is a link to the tax year IRS 2020 Form 1099-B Instructions:
IRS Instructions for Form 1099-B (tax year 2020)
Here is a link to additional information:
Covered vs noncovered 1099-B transactions
Please explain 1099B:
Box C Short Term Sales not reported to IRS-asset held one year or less (Broker did not report date of acquisition and cost basis. Also referred to as non-covered)
Box F Long Term Sales not reported to IRS. Asset held more than one year(Broker did not report date of acquisition and cost basis. Also referred to as non-covered)
Sale Category:
Box A Short Term Covered-Asset held one year or less (Broker did report date of acquisition and cost basis.)
Box E Long Term noncovered. Asset held more than one year (Broker did not report date of acquisition and cost basis. Also referred to as non-covered)
[Edited 04/08/2021|5:28 pm pst]
