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apandey1
New Member

Noncovered security, 1099-B from a escrow release, Turbo Tax giving errors

Hi, I am a TT use for 14 years now but probably posting a question for the first time. I received a 1099-B form from a broker which is not being handled well in TT. Here are the details.

 

1.) In June 2020, I exercised the vested stock options of a company after quitting. Paid 1.23 per share for 3000 shares (FMV 1.5 on the exercise date). It was an ISO sale and I held the sold stocks (3000 stocks).

2.) In September 2021, the company was acquired by another company and I received 150 shares of the acquiring company + some cash as part of my ownership of 3000 stocks of my old company (acquired company).

3.) I received 1099-B etc. and probably (I am hoping that) everything was handled well in the 2021 taxes (filed in 2022).

4.) Now, after 1+ years, in March 2023 the broker released a new amount of 4475/- which was held in an escrow. I got the check payment in 2023 and now received a corresponding 1099-B for 4475/- . The problem is that 1099-B has either missing fields, or just not the right information to calculate the cost-basis.

 

Here are the items/boxes of 1099-B

Reported to IRS: Net Proceeds X (checked)

Applicable check box on Form 8949: X (checked)

1a (Description of property): Shares sold

1b (Date acquired): blank

1c (Date sold or disposed): 17 March 2023

1d (Proceeds): $4475

1e (Cost or other basis): blank

1g: blank

2 (Type of gain or loss): blank

4 (Federal income tax withheld): 0.00

5 (Check if noncovered security): X (checked)

12 (Check if basis reported to IRS): blank (not checked)

14, 15, 16: blank

 

Now, I think this is a "long term basis not reported to IRS (noncovered)" but even then, TT does not let me proceed and I don't know how to calculate the cost basis with this information. I tried the workflow in TT to calculate the cost basis, but it is asking me questions I don't have answers for.

 

Can someone please help?

 

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