" Questions: (1) How do I account for the $48.03 she received from the sale of the fractional share of Brighthouse using the Turbo Tax "Freedom Edition"? (2) Do I need to complete a Form 8949 and a Schedule D in the "Freedom Edition"? (3) Box 5 of her 1099-B is checked, indicating it is a "Noncovered Security". The explanation of that on the back of the 1099-B suggests that the sale of her fractional share may be a long-term transaction. Is that correct? (4) Or would this sale be considered a short-term transaction, since the 1099-B says the "Distribution Date" (which, presumably, is also her acquisition date) is 8/4/17 and the "Date sold or disposed" is 8/10/17? Thanks for any guidance you can provide."
(1) I've never used any online edition of TurboTax, certainly not the "Freedom Edition". If the Freedom Edition has an interview titled "Stocks, Mutual Funds, Bonds, Other" (or similar) that's the interview to use. You tell TT that you received a 1099-B, enter a proceeds of $48.03 against a basis of $0.
(2) Simply entering the 1099-B does the trick. The 1099-B information is placed on Form 8949, figures from Form 8949 roll up to Schedule D, Schedule D posts information on line 13 of Form 1040.
(3) The concept of "Covered/Noncovered" began in 2010 so anything reported as Noncovered has a good chance of being "long term" but that's not conclusive as "Covered/Noncovered" was phased in starting in 2010. But because your mother's holding of MefLife is clearly long-term (stock received in 2000) so is the holding in Brighthouse.
(4) "Distribution date" isn't a box on the "official" 1099-B
<a rel="nofollow" target="_blank" href="
https://www.irs.gov/pub/irs-pdf/f1099b.pdf">https://www.irs.gov/pub/irs-pdf/f1099b.pdf</a> so it's not a date transmitted to the IRS. Ignore it. It's a long term sale.
Per Brighthouse Form 10 (<a rel="nofollow" target="_blank" href="
http://investor.brighthousefinancial.com/static-files/e3a5f1e4-f222-4a86-9586-e33d3cb35347">http://i...>)
"Each U.S. holder’s holding period in our common stock received in the distribution will include the U.S. holder’s holding period in its MetLife common stock on which the distribution was made, provided that the MetLife common stock is owned as a capital asset on the date of the distribution."
