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Level 2
posted Jun 3, 2019 10:48:32 AM

How do I report and document uncovered investment sales?

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1 Best answer
New Member
Jun 3, 2019 10:48:33 AM

Brokerage statements do not always report the sales category, even if the information is available on the 1099-B.

If you held the security less than one year, use code B (short-term, non covered)

If you held the security more than one year, use code E (long-term, non covered)

The IRS is receiving the 1099-B information from the broker, but is relying on you to report the correct category (and cost basis, in some cases)

As for documentation,  save any supporting information that you have, such as trade confirmations, screenshots of historical prices from finance.yahoo.com, etc.  


Input your 1099-B at:

Federal Taxes > Wages & Income > 

Scroll down to Investment Income, then click Show More

Select Start next to Stocks, Mutual Funds, Bonds, Other 

5 Replies
New Member
Jun 3, 2019 10:48:33 AM

Brokerage statements do not always report the sales category, even if the information is available on the 1099-B.

If you held the security less than one year, use code B (short-term, non covered)

If you held the security more than one year, use code E (long-term, non covered)

The IRS is receiving the 1099-B information from the broker, but is relying on you to report the correct category (and cost basis, in some cases)

As for documentation,  save any supporting information that you have, such as trade confirmations, screenshots of historical prices from finance.yahoo.com, etc.  


Input your 1099-B at:

Federal Taxes > Wages & Income > 

Scroll down to Investment Income, then click Show More

Select Start next to Stocks, Mutual Funds, Bonds, Other 

Level 2
Jun 3, 2019 10:48:35 AM

I'm still unclear,  I sold a fund which had some 60 separate purchase dates for the uncovered portion.  Should I provide the total cost or should I separately enter each purchase date, number of  shares purchased  on  that date and the cost and proceeds for the purchase and sale of these shares? If the answer is a one entry total cost, should I just retain the backup or submit it separately to the IRS?  Is Quicken history of each purchase and its cost considered adequate backup?

New Member
Jun 3, 2019 10:48:36 AM

Since they are all uncovered, consolidate into one entry.  Use "various' for purchase date.  No need to submit the backup, but a screenprint or account statement should be kept in case the IRS questions it.

Level 2
Jun 3, 2019 10:48:37 AM

Thank you very much.

New Member
Jun 3, 2019 10:48:38 AM

Sure thing, you're welcome