Sale Type Not Shown on 1099-B for Escrow Disbursement

Forum|Forum|3 months ago
April 11, 2026
1 reply
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My company was acquired and I received a full payout for my shares in 2024. In 2025 I received an escrow disbursement. In Box 6: Reported to IRS, the Gross proceeds box is checked, but nothing is checked in Box 2: Sales (short-term, long-term, ordinary). What drop-down option should I use in Turbo Tax for the Sales Section when reporting this 1099-B (e.g., short-term covered)?

maglib

Level 11

@satella Did you get a 1099-B? To enter a residual stock disbursement (often a final payout ) in TurboTax a year later, report it as a new stock sale under Federal Taxes > Wages & Income > Investment Income > Stocks, Mutual Funds, Bonds, Other. Use the date of the final disbursement as the sale date and zero as the cost basis to report the full amount as a gain, or enter the prorated basis if known. To determine long term or short term would be based on when shares were issued or you vested. You can enter "Various as the date purchased". If no cost basis, then say LT or ST as option no basis reported to the IRS section. Most likely this is LT no basis reported to the IRS.

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