How do I report a CUSIP item with proceeds from a sale of rights when the date of sale question is asked and I did NOT sell the stock?

ORKE1 · Mar 31, 2021 9:19:46 AM

The amount of the sale of rights was $10 so if I give a date of sale for that, Turbo Tax presumes that i sold the stock and counts the difference from the cost basis (also not given by me) as a loss. I did not sell the stock

Dividends are taxed at a different rate than capital gains. Therefore, it will make a difference depending upon the type of dividend you are asking about. Qualified dividends are taxed as long term capital gains. Please see this link for a more detailed explanation.

The broker will typically report your investments from the year and will summarize them according to their proper classification on Form 1099-DIV, 1099-INT, or 1099-B as applicable. If you believe your 1099-DIV is incorrect, you should have support for the amount you report on your tax return should the IRS question items on your return. The IRS will take the amounts reported on your tax forms such as the 1099-DIV and will ensure they match what you report on your individual tax return.

Please see this link from the IRS for more guidance when an incorrect 1099 form is issued.

@Hardway

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