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

[FIN]

It looks like this may have been fixed. I retried the import from e*Trade tonight and the evil N's are gone.

[Apbk]

Correct.  It worked for me this time around--thank you!

[2500stock]

How to make it work?  

The Turbotax was updated when I turned it on.

I tried to use the 1099-B already entered, I still have the problem.  When I deleted the 'N', it will come back.  Even replacing it with 'W', it still does not work.

Do I have to delete the 1099-B files and re-installing it?

Please advice.

[wiss77]

Confirmed fix.

1. update TurboTax

2. Delete the the existing e-trade 1099B

3. Re-import 1099B 

No more code N errors and Washsales are showing correct Code W.

[danthedad]

I confirmed it's fixed and was able to file my return tonight. You will need to update your Turbotax software, then delete the 1099 from E-Trade/MS, and then import again. They all came through without the "N" code this time. Good luck!

[DXY2021]

Wondering if this has been applied to the desktop version yet?

Normally it auto updates when i open it, but didn't for me today. I went into the menu to check for updates and it says everything is current

Deleted the 1099 and reloaded and the N's are still there....

[roytoutant]

I have the Premier desktop version and when I stated the program it did an update for me.

I was able to delete my previous Etrade entries and download them again.   No "N" codes.

So I think I am good to go.

[joecan]

More than 1099Bs were imported from Etrade.  Like dividends. Will re-importing create duplicates of the other records?   I don't even see Dividends on the Import Summary screen.  Is there a places to see everything imported?

Thanks

[roytoutant]

If you go to "wages and income"

Then Import Summary

Then View

You should see a line for "E*Trade from Morgan Stanley"

If you click on the + sign next to that line you can see the details of the import. which will include 1099B as well as interest and dividends.

If you click the delete button then it will delete the entire Etrade import and you can do another import from Etrade.

At least this is how it works for my desktop Premier version.

I did somehow end up with a duplicate of my 1099B, which I was able to delete.   Not sure how that happened but it was easy to fix.  

[DWlassie]

No luck here, deleted 1099-Bs from MS E*TRADE, updated TT and still having N codes.  

[JMM5]

1 for 3.

Updates to the 3 problems I reported with the post-MS 1099's when handling with the PC Desktop version.

1) Missing Treasury Bill Interest;   although I can see the updated 1099-INT (Corrected) when manually downloading,, and it includes this Line3 entry, importing does not seem to retrieve the copy that includes this.   

2)  "N" on 1099B entries:  This seems fixed for me after updating the desktop version and reimporting.  Has been working for some time on the online version.   Checkmark.

3) "Missing" cost basis for all 1099B entries that have $0.00 basis.   This is also not fixed on import - TT forced me to visit every entry and manually add the $0.00 basis, then confirm that I really want to do that;  printed 1099B shows $0.00 basis.   Other brokers and pre-MS 1099B from E*Trade all handle this properly.

[danthedad]

@JMM5 If your 1099-B includes any employee stock such as RSU or ESPP, then your cost basis should almost certainly not be $0. Check whether the RSU values and ESPP discount are included in your W-2 as income, and whether some shares were sold by E-trade on your behalf to cover taxes (also included in your W-2 taxes paid). If the shares and taxes are included in your W-2, then the cost basis on your sales should not be $0 or you will be paying tax twice on the RSU grants or ESPP shares. Google for more info if this might apply to you. 

[JMM5]

Thanks @danthedad - I agree - RSU's/ESPP/etc may not be tracked and may show up as $0.00 that need to be edited.

HOWEVER  - when selling equity stock options (as short sales, unrelated to employee stock), the most modern accounting practice is to represent these on 1099B as $0.00 basis, and show all proceeds as +/-$<gain> amount.   This is the behavior of most, if not all clearing firms today.    So, each and every one of these needs to be manually touched - which is a real PITA.   Imagine if you have hundreds or more of these, b/c that's your trading style..........

[danthedad]

@JMM5 Agreed, I had to touch every one of mine and add the actual "adjusted cost basis". Luckily, E-Trade sends me a separate addendum PDF with all of the buy/sell dates and adjusted cost basis from the shares they already sold to cover taxes. So, my adjusted cost basis is always fairly close to the sell price due to limited holding period (QuickSale of RSU and ESPP). I'm glad this situation with "N" is clearing up.

[DWlassie]

Okay, looks like it worked correctly this time after updating TT and also deleting the E*TRADE import summary as well as any other income section where stock sales were included.  Go to interest / dividends section as well as investment income section and delete everything tied to brokage imports. Then do a fresh import and it looks like it worked correctly without the N codes.