Every 1099-B entry imported from ETrade shows up incorrectly with Adjustment Code N

[wiss77]

I get it's an etrade issue in the data stream send. However TT should allow us to adjust the codes and not lock it for us! In the end we are responsible for sending our taxes. 

[danthedad]

For @jared5537 and others wanting to know "what is code N", you can refer to IRS instructions for form 8949.

https://www.irs.gov/instructions/i8949

IF . . .	THEN enter this code in column (f) . . .	AND. . .
You received a Form 1099-B or 1099-S (or substitute statement) as a nominee for the actual owner of the property	N	Report the transaction on Form 8949 as you would if you were the actual owner, but also enter any resulting gain as a negative adjustment (in parentheses) in column (g) or any resulting loss as a positive adjustment in column (g). As a result of this adjustment, the amount in column (h) should be zero. However, if you received capital gain distributions as a nominee, report them instead, as described under Capital Gain Distributions in the Instructions for Schedule D (Form 1040).

[PatentWonk]

All- there is another thread on this same issue. Apparently e-trade has got the message and is working on a fix. No ETA yet, but customers are supposed to be notified…we shall see.

[Red Fox]

Yep, the "Nominee code N" indicates that the account is jointly owned (other than with your spouse) and that amounts attributed to the owner by the 1099 form must be allocated to the co-owners. And this would require 1099s to be issued to each of them as well as recipients of the money. You then add/subtract the amount that is distributed/gained to/from others.

Basically, it's a hornets nest and probably raises your score on the audit meter if you don't allocate any money out of your Nominee-tagged income... 

[Red Fox]

The fix will hopefully include retraining those reps who were giving out information blaming Intuit for the problem, before they did any research at all.

[DWlassie]

E*TRADE relationship manager said adjustment code N is a known issue and is being investigated. 

[joecan]

Is there an issue number or bug number?  They told me they didn't know of any problems

[joecan]

They just told me there was no known issue.  Did they give you a case number or anything?

[RachelW33]

We are aware that some of our customers are having an issue with wash sales incorrectly importing with adjustment code N instead of adjustment code W.  

Please click here to sign up to receive an email notification when this issue has been resolved.

[PatentWonk]

Our issue here has *nothing whatsoever to do * with wash sales. All sales from Morgan Stanley e*Trade reported on a 1099-B are importing with an incorrect Adjustment Code N. 

[johnnj967]

That is correct. All of my sales are imported into TT from E*TRADE coded as "N".  This indicates a Nominee transaction.  I did NOT have any Wash Sales! 

[Doug115]

Rachel,

I hope you are paying attention to the posts following yours. NONE of us had WASH sales with E*Trade.

-Doug Wimberly

[DawnC]

The changes being implemented will correct imported items with the N code, not just wash sales, so please sign up with the link in the article, below.

1099-B transactions reported with code N.  (sign up link)

@johnnj967 

[BrimstoneFox]

As for 'group totals' I don't recall the specifics but I did this a couple years ago I think you can group all likewise trades, (ie short term/long term/ESPP etc...) just add up everything Paid $10000, sold $11000 etc.. if it was 1 transaction or 100 it doesn't matter. So long as there's no wash sales or anything you're good to go. If you have wash sales you'll need to attach those specifically to the report (it can be the full 1099-B or you can condense only the wash sales to an excel sheet and print it out) you cannot file electronically that way (or you can but you need to snail mail that piece)

I broke the program a couple years ago, I think it only supports 2500 trades in a year (I was like 7k) The 1099-B was almost 500 pages, so mailing that was a non-starter too. I think I used pandas to parse the pdf and spent an hr. or two whittling everything down in excel. Painful but it worked. I think there's help in the software itself about doing some of that.

[RachelW33]

Although your situation doesn't involve wash sales, you should still sign up here to receive an email notification when the adjustment code N issue has been resolved.  Any issues involving imports with adjustment Code N will be resolved within the same update.

@Doug115 @johnnj967 @PatentWonk