1099-B confusion

[crg000]

I was granted 600 RSUs for my company when I started (200 each year for 3 years). The first group of those came to me in 2018, I ended up getting 140 shares after 60 were sold to cover the taxes.  Fast forward 18 months, the stock hasn't done well, I sold those shares at an $8,000 loss, however when I enter the data from the 1099-B it says its a "Long Term – Noncovered Securities" meaning I owe more money, that doesn't make sense. I feel like the form is wrong, should I enter long term not reported? 

thanks 

[DavidS127]

If your 1099-B doesn't include the "cost basis" on the form, you will need to enter the cost basis in order to correctly calculate the gain or loss on the sale. 

For "noncovered securities" the cost basis is not reported by the broker, and you are responsible for entering that number.  When it is correctly entered, you should have a loss on the sale (assuming the proceeds were less than your "cost basis").

Sometimes the cost basis will be reported by your broker in the supplemental schedules attached to the 1099-B .  If not, you will need to review the information provided by your company to figure out your "cost basis" in the RSU shares you sold.

[mwinski]

How is cost basis figured?  I have two sections on my 1099-B, and one has all the info, and the other says it is non-covered securities transactions, with no cost basis reported.

[CatinaT1]

The cost basis is your original purchase price.  Brokerages used to not have to track this information, it was solely on the taxpayer to track so they could figure if there was a gain or loss upon sale.  

Several years ago, it became required for the Brokerages to report the basis.

An easy way to think about it is Covered Transactions are covered by the new requirement and will show the basis.  Non-Covered Transactions are not-covered by the requirement to report the basis.

[NCperson]

do you have the advice from your employer when the RSUs flipped to stock in 2018? the stock price used to determine all the calculations on that form is the cost basis! 

[Jordanafanatic2]

If you do update the cost basis with the supplimental 1099 but that was not reported to IRS due to disposal method, how does the IRS know your proper cost basis? Do we need to make sure they get it somehow? My estimated cost basis in the 1099-B is way different than the actual provided in the supplimental so it is very significant. 

[DavidD66]

If you show the changes to the cost basis as and "adjustment" to the cost basis, that will be telling the IRS that the cost basis reported on the 1099-B is not correct.  The IRS frequently doesn't know the cost basis of assets sold.  To a great extent, we are still on the "honor system" when it comes to tax reporting.