My 1099-B does not include short-term/long-term basis. (though it does say shares are non-covered). What do I enter for Sales Section dropbox for form 1099-B?

I have some RSUs that just vested. While I kept the actual vested shares, some were sold off in Sale to Cover in order to meet tax obligations by the broker. I got a 1099-B detailing the sale of the shares used to meet tax obligations. These were sold as soon as the award vested. The form it doesn't state long/short term. What do I put in the Sales section dropdown?

374

Expert Alumni

Mar 28, 2022 9:32:28 AM

The term 'noncovered' simply means the broker does not know your cost basis and therefore is not reporting that to the IRS. Your cost basis is the market value of the shares on the day it vested (this is included in your W-2 income and therefore becomes your cost basis per share).

The stock, once you have complete rights to the stock is short term if held less than one year. The stocks sold at the vesting date to cover your taxes will be short term holding period.

Holding for more than one year is long term and receives special capital gain tax treatment.

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My 1099-B does not include short-term/long-term basis. (though it does say shares are non-covered). What do I enter for Sales Section dropbox for form 1099-B?