2022 Form 1099-B box 1e R

[ChuckR2]

Hello,

My financial institution sent me a 2022 Form 1099-B with an 'R' after the cost basis value in box 1e of some of the lines. They describe the 'R' like this:

Cost or Other Basis amounts shown with "R" are adjusted for current year's return of capital.

I don't see anywhere in TurboTax the proper way to designate that as I manually enter each entry.

[JulieS · Accepted solution]

No, you aren't required  to designate that is a return of capital, but if you want to for your own purposes, the correct way to do that is to include the phrase "return of capital" or "return of principal" in the description. 

For example, use "FNMA return of capital" instead of just "FNMA".

This type of distribution is when a portion of your original investment (basis) is returned to you even though you did not sell the stock. 

You report the transaction with no gain or loss, but you also reduce your original basis by the return of capital payment. Once you reach $0 basis, you report the transactions with $0 basis.