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posted Mar 26, 2023 8:02:02 AM

1099B does not allow date sold to be prior to the date acquired. The securities in question are a short sale as indicated on my form with ss. What do I do?

These are non-covered transactions. There are several line items for different sales. Each show zero for the cost basis but the totals show a cost basis. Not sure how to fill this in.  

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Expert Alumni
Mar 26, 2023 8:40:06 AM

You will post proceeds and sales as they appear on the 1099-B, but reverse the dates.

 

Report on Form 1099-B the relevant information about the security sold to open the short sale, with the exceptions described in the following paragraphs. 

  • In box 1a, report the description and quantity of the security delivered to close the short sale.
  • In box 1b, report the acquisition date of the security delivered to close the short sale.
    • This was the date you opened the transaction, but it started as a sale.
  • In box 1c, report the date the security was delivered to close the short sale.
    • This is the date to close the transaction, which ended with a purchase.
  • In box 1e, report the adjusted basis of the security delivered to close the short sale.
  • In box 2, report whether any gain or loss on the closing of the short sale is short-term or long-term based on the acquisition date of the security delivered to close the short sale. Apply section 1233(d), if applicable.

Please see short sales of securities on page 2:  Instructions for Form 1099-B