Solved: No cost basis on 1099B since it is long term uncovered.
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getintuch
New Member

No cost basis on 1099B since it is long term uncovered.

No cost basis on 1099B
1 Best answer

Accepted Solutions
KenH1
New Member

No cost basis on 1099B since it is long term uncovered.

Brokerage statements will not always report the cost basis and/or sales category, even if the information is available right on the 1099-B. The IRS is receiving the 1099-B information from the broker, but is relying on you to report the correct cost basis and category.

For unreported cost basis:

Make a reasonable estimate, based on old trade confirmations or historical prices from a source such as www.finance.yahoo.com 

For unreported sales category:

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

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

View solution in original post

1 Reply
KenH1
New Member

No cost basis on 1099B since it is long term uncovered.

Brokerage statements will not always report the cost basis and/or sales category, even if the information is available right on the 1099-B. The IRS is receiving the 1099-B information from the broker, but is relying on you to report the correct cost basis and category.

For unreported cost basis:

Make a reasonable estimate, based on old trade confirmations or historical prices from a source such as www.finance.yahoo.com 

For unreported sales category:

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

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

View solution in original post

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