Adjusting Cost Basis for downloaded 1099-B Mutual Fund Sale that has both Long and Short Term Gains

[DFurciniti]

I am having trouble identifying the best way to adjusting the cost basis for a downloaded 1099-B Mutual Fund Sale that has both Long and Short Term Gains.  There does not seem to be a way to split that sale into different categories.  I have all of the cost basis info to determine what part is LT and what part is ST but when I select the Edit button for the sale it only lets me those 1 or the other.  To get around it I have modified the sale to be LT and then created a new sale that is ST but the new sale does not appear in the same bucket with the LT sale.  (i.e. the LT sale is in the broker specific investment account and the ST sale is in a new self entered "account".  Is there a different way to make this happen?  Should I delete the Sale from the Broker account all together and put both the LT and ST in this new "account"?

[AmyC]

Yes, good thinking. You can enter 4 lines and cover the entire form.

Enter the totals for each: 

• short term covered
• short term non-covered
• long term covered
• long term non-covered

If you decide to enter summary data only,  you are required to send a copy of your 1099B to the IRS. Once you submit your electronic copy, TurboTax prints out a cover letter and instructions on where to send a copy of your 1099B.

[DFurciniti]

@AmyC, I am not sure I understand.  

Are you saying it is best to remove the entry and create 4 (not 2) entries?  Not sure why I need 4 since it would be reported as long-term non covered and short term non covered (B and E), right?  Why do I add in the covered (A and D)?  They were items that were reported on the 1099 as needing cost basis info.  

When you say summary requires to send in forms, I want to make sure I understand.  Some of these cost basis entries have 2 sell points (1 LT and 1 ST)  I have others that have 10 lines for LT and 4 for ST.  Should I enter in each fractional sale?  I was taking the basis for all of the sales (for LT and then ST) and totaling them up and figuring out the proceeds that represent those totaled items as well, then entering in that as a single sale with various dates.  Is that the best approach? 

Below is an excerpt from one of the Sales:

Symbol	Shares Transferred	Cost Basis Per Share	Purchase Date
AGG	2.846786	$105.19	5/18/18
AGG	0.0981	$113.15	9/23/19
AGG	0.037564	$113.14	10/1/19
AGG	0.477984	$113.10	1/16/20
AGG	0.033682	$118.67	8/11/20
AGG	0.439089	$118.92	8/11/20
AGG	0.519965	$117.40	1/14/21
AGG	0.54683	$114.35	5/3/21
	Shares (Per Category)	Cost of Shares (per Category)	Shares Sold (Per Cat)	Proceeds (per Category)	Gain(Loss)	Sell Date	Category
From 1099-B	5	0	5	$571.96	$571.96
Proposed LT Transactions	3.933205	$682.17	3.933205	$449.92719	$-232.24281	12/16/21	LT
Proposed ST Transactions	1.066795	$231.75	1.066795	$122.03282	$-109.71719	12/16/21	ST

[AmyC]

You did not need all 4 lines, only those that apply to you. If you only need two lines, great! 

Total up all the LT parts and make one entry. Do the same for ST totals. You can use the totals on the 1099-B, as your screenshot shows at the bottom, the LT and ST and you are saying that is noncovered- the basis may not be correct. I do see the zero for basis showing so you will need to input the correct basis  as needed instead of what is showing. The IRS knows noncovered means the broker didn't know and you corrected it.

Mail a copy of your 1099-B when the instructions tell you to along with the 8453.

[fanfare]

@DFurciniti 

any mutual fund shares sold but held for one year or less are ST.

The fund company is required to track this and report it on 1099-B for you.

Any mutual fund shares sold but purchased after 2013 (or thereabouts)  are LT if held more than a year.

The fund company is required to track this and report it on 1099-B for you.

That leaves only shares you purchased before 2013 ( or thereabouts) for which the fund company may not know your basis. Those must all be LT shares if you sold in 2021.

Shares are sold First In, First Out.

What does your 1099-B statement for the SELL of this mutual fund say ?

If you sold all shares you should see "report with Box A checked", and "report with Box D checked" and possibly "report with Box E checked" for the earliest shares.