Non covered securities

[sgaitonde]

Dear Experts,

I need your help. I received 1099-B from my brokerage firm which has a section of 'Non covered'  securities.

All it has the information about 

Quantity:0.000

Date Acquired: Blank

Date Sold: Mentioned

Proceeds: Mentioned

There is no other information mentioned in this section. In a supplement they have mentioned they have mentioned Date sold, proceeds and cost basis factor and has a put a note saying that 'ask your tax adviser' for further help'. 

When I imported this form into Turbotax desktop version 2024, it gives me an error saying that 'needs to review'. How do I fix this? How to I find out the cost basis, quantity and date of purchase?

Any help is appreciated.

Regards.

SG

[fanfare]

For non-covered securities ( BOX B or E) showing wrong basis, enter the correct basis yourself.
Use code "B" and put -0- in col (g). TurboTax will do this if you tell it to.

quantity is not important.

Date acquired is not important what matters is the Box category you select: Long Term or Short Term.

after the holding period has been identified, you can put "various" for Date Acquired.

@sgaitonde 

[sgaitonde]

Thanks for your response but the question is how do I find the correct basis? Because with no quantity mentioned I even do not know how to calculate cost basis and from which lot. Appreciate your guidance regarding this.

Regards,

SG

[sgaitonde]

Also, I received something known as cost basis factor for each of this sale but not sure what it means and how to use it for calculating cost basis.

Regards,

SG

[KeshaH]

If these were inherited securities, you'd get a step up in basis. The step up means that the basis of the securities is increased to their fair market value on date of the deceased owner's death. You'll need to find the value of these securities on the date of death to enter that as the cost basis and calculate your gain or loss.

If these were not inherited securities, you'll need to find out what they were worth or purchased for at the time of original purchase. 

You can use resources such as online cost basis estimators, old account statements, or online account or transaction history from your broker to recreate your cost basis. Just make sure that you keep records of whatever you use to calculate your basis.

[sgaitonde]

These are non inherited stocks. I understand what you are saying but how do I derive the quantity? (Do you mean sales proceeds/price on that day)? If that is the case how do I find which lot of shares I bought I should use for calculating cost basis?

SG

[fanfare · Accepted solution]

Unless prior instructions were given before the sale,

you sold your earliest shares,

This is called First In, First Out.

@sgaitonde 

[fanfare]

You sold some shares and got money?

if the security price is quoted  on that date, you can calculate the quantity.

Q = Money divided by Price

your confirmation is going to tell you what price you got, and also the number of shares  sold.

This must be, as it is required by IRS.

@sgaitonde 

[sgaitonde]

No. I did not sell any shares. The 1099 B says these are proceeds from the ETF to cover some of the costs. There is no mention of quantity of shares sold and from which lot. All it says is the total proceeds and the date. However, in one of the supplements it mentions cost basis factor for each of the proceeds. Now, I have no clue as to how to report this info and calculate cost basis based on this..

SG

[fanfare · Accepted solution]

if you have one of those ETFs that take monthly fees, reporting that is very tedious.

just use a cost bais of zero, if your fee is miniscule. The quantity doesn't matter, enter "1" to make TurboTax happy.

@sgaitonde 

[sgaitonde]

Thanks. I wasn't sure about how to enter it.

Regards, 

SG