1099-B

[ponigirl]

I am doing my Nephews taxes and he has a 1099-B Noncovered short-Term Gains or Losses on Gross proceeds that I uploaded for E-trade.  But I am unable to answer the questions Turbo tax has.

Can you help me?

[ErnieS0]

Noncovered short-term gains or losses means E*Trade did not provide cost information to the IRS. This usually means E*Trade does not have this information.

Since it's short-term, it may be from a merger or acquisition in which case you may have to calculate the cost yourself. Check the company's investor relations section. They may have information.

You can use $0 as your cost basis if you can't locate any information. However, you will probably pay more tax than you owe if you use $0.

[ponigirl]

Ok, I will check there site.  They also sold some stock for taxes but they do not tell me how many shares.  On the check stub it shows how much was offset. in his gross amount.  Do I not claim it?

[ToddL99]

The dollar-value of the stock sold to pay taxes was included in his W-2 income. The number of shares sold is not relevant for tax purposes. 

The amount sold for taxes is included in the cost basis of the shares he sold for his own benefit (assuming he sold all the remaining shares for cash). 

If he did not sell all the remaining shares, then he needs to allocate the amount sold for taxes (in W-2) to the cost basis of the shares he retained and sold.

[ponigirl]

Got it!  Thank you so much!