1099-B Non-covered Securities with Undetermined Holding Period - Should I report these under Form 8949 Pat I C or B?

[FPL_8240]

I received an 1099-B from Etrade that states, "Non-covered Securities with Undetermined Holding Period (Consider Box 5 (noncovered Security)​ as being checked and Box 12 (basis is reported to the IRS) as not being checked for this section. These​ transactions should be reported on Form 8949 Part I or Part II with Box C or E checked."

I just want to confirm where I should enter these proceeds.  The 1099-B says I should report it with Box C, but it seems like B should be selected since I did receive at 1099.  See screenshot of form below. Can someone please confirm?

[JamesG1]

It sounds like the provider did not furnish a purchase date, so the provider does not know whether this is a long-term or short-term transaction.

You may be able locate a purchase date from your personal investment records.  

The purchase date will determine long-term or short-term.

Then either code C or code E may be selected.

[FPL_8240]

Hi,

Thanks for the reply. I should have stated that I do have all the information to determine if it is a short or long term along.  What i want to confirm is which box code in Part I I should select?
ETrade says to either select C for short term (or E which doesn’t apply since it’s not long term), but doesn’t look like that is correct as I did get a 1099B.  C says, “Short-term transactions, other than digital asset transactions, not reported to you on Form 1099-B or Form 1099-DA.”  Should I select B instead as it says, “Short-term transactions reported on Form(s) 1099-B showing basis was not reported to the IRS”.  Furthermore, if this was a long term transaction, E should be selected and that corresponds to selecting B for short term. 

[MelindaS1 · Accepted solution]

For your short-term transaction, definitely use code B. I don't know why E*Trade told you to check box C which is only for transactions without a 1099-B while actively sending you a 1099-B, maybe the templates they use for their reporting are out-of-date. But anyway, yes, since you received a 1099-B, you'll use code B if it is short-term (sold after less than 1 year) and code E if it is long-term (sold after > 1 year). 

You can take a look at Form 8949, and that can help you determine what entries to make in the interview screens. Short term transaction codes are listed on the top half of the form, and long term sales are on the bottom half of the from starting on page 2 (Part II).