I have a 1099b. Turbotax is asking for a "Sale Category." None of the options in the dropdown match anything on my 1099b, and TTax doesn't explain any of them, in case I have one that has the same meaning but they used different terms. What "category" should I choose? Where do I find info to get this explained?
This is what the different Sales Category codes mean:
Noncovered
means that the security was purchased before 2011, when the rules
changed regarding whether a brokerage must report sales to the IRS. If
the basis is blank, the sales category will be E. Generally, noncovered securities are always long-term. The gain or loss for a noncovered security is reported on the 1099-B.
If the basis is reported, then this is a covered security. If the basis is reported for your short and long-term sales, the sales category would be A and D, respectively.
If the gain or loss is not reported, but short- or long-term is reported, then the sales category would be C or F. This happens when the brokerage firm is custodian of a security that was transferred to them from another firm, so they are clueless as to what the purchase price and date were.
Box X is used when the security or asset could be long or short term, but not enough information is available to make that determination.
This is what the different Sales Category codes mean:
Noncovered
means that the security was purchased before 2011, when the rules
changed regarding whether a brokerage must report sales to the IRS. If
the basis is blank, the sales category will be E. Generally, noncovered securities are always long-term. The gain or loss for a noncovered security is reported on the 1099-B.
If the basis is reported, then this is a covered security. If the basis is reported for your short and long-term sales, the sales category would be A and D, respectively.
If the gain or loss is not reported, but short- or long-term is reported, then the sales category would be C or F. This happens when the brokerage firm is custodian of a security that was transferred to them from another firm, so they are clueless as to what the purchase price and date were.
Box X is used when the security or asset could be long or short term, but not enough information is available to make that determination.