@fatebridges-sbcg
Yeah...when the 1099-B indicates they are not reported? What is not being reported by them is the original Purchase cost....they will still report the proceeds, so the IRS will know you sold them.... All that means is that they were (probably) long-held shares that the fund company either does not have the original purchase price, or does, but because they were bought long ago, they may not have an accurate record of their "basis". Thus, when you report the sale in your tax software, you will have to provide the cost basis yourself.
Sometimes the brokerage will have a basis in that cost block for what they think you are using, and when it's in the "not reporting" situation you can change it to whatever basis procedure you are actually using (First-in-First-out, or Last-in-First-out, or Average basis )...and sometimes it is empty and you have to fill the $$ basis yourself. The sale category for that one will likely be a Box" E"...Long Term noncovered. (category B, Short Term noncovered, probably shouldn't exist in 2020, but I guess it could happen in some strange way)
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
