The 1099-B should list the basis.
Cost or adjusted Basis means what your beginning value was.
If you purchased the stock, it would be what you paid for it (COST)
If you inherited it, it would be the value of the stock on the day you inherited it.
There are times when the broker doesn't have records of that, in which case you would need to provide that information.
Hi Kris. Thank you for your reply. I talked to my financial advisers and they didn't understand either. What stock should the amount be reflecting? Is it a general number reflecting all stocks bought 2020?
Thanks,
Bente
The original cost basis is the purchase price you paid for an investment, plus commissions and any fees. In most cases it's simply the total amount you paid for the investment.
The adjusted cost basis is the original acquisition cost plus any adjustments due to the following:
• Stock plan and ESPP transactions
• Corporate actions
• Wash sales
• Amortizations and accretions
• Standardized options
Hi, so I still do not know what amount to enter.
Is it beginning value of each stock (total value of all stocks bought) bought in 2020 ?
Thanks,
Bente
You will have to have a value for each individual stock.
If you are having trouble determining the original value per share you may be able to use Historical Stock Quote Prices - MarketWatch to determine the original value.
Hi, I screen shot the information in the box and sent it to my financial adviser. They do not recognize the numbers so something must have gone wrong when the information was uploaded from my Morgan Stanley account. Is it possible to re-enter all the information? How is this done?
I didn't have any of this problem last year.
Thanks
You can quickly enter this manually. Your brokerage statements should include a summary of your transactions, grouped by sales category.
There are seven possible "Box" designations that indicate the holding period (Long/Short Term) and the reporting status. These are the only ones you have to summarize. If you want to manually enter your 1099-B as the summaries.
Code A. This code indicates a short-term transaction for which the cost or other basis is being reported to the IRS. Use this code to report a transaction that the recipient will report on Schedule D (Form 1040), line 1a, or on Form 8949 with box A checked with totals being carried to Schedule D (Form 1040), line 1b.
Code B. This code indicates a short-term transaction for which the cost or other basis is not being reported to the IRS. Use this code to report a transaction that the recipient will report on Form 8949 with box B checked with totals being carried to Schedule D (Form 1040), line 2.
Box C. Report on a Part I with box C checked all short-term transactions for which you can't check box A or B because you didn't receive a Form 1099-B (or substitute statement).
Code D. This code indicates a long-term transaction for which the cost or other basis is being reported to the IRS. Use this code to report a transaction that the recipient will report on Schedule D (Form 1040), line 8a, or on Form 8949 with box D checked with totals being carried to Schedule D (Form 1040), line 8b.
Code E. This code indicates a long-term transaction for which the cost or other basis is not being reported to the IRS. Use this code to report a transaction that the recipient will report on Form 8949 with box E checked, with totals being carried to Schedule D (Form 1040), line 9.
Box F. Report on a Part II with box F checked all long-term transactions for which you can't check box D or E because you didn't receive a Form 1099-B (or substitute statement).
Code X. Use this code to report a transaction if you cannot determine whether the recipient should check box B or box E on Form 8949 because the holding period is unknown.
Open or continue your return (if it's not already open) and search inside TurboTax for the phrase stock sales.
When you are done, you'll eventually come to the Here's a summary of your broker sales screen where you can edit, delete, or enter more sales.
You will have to mail a copy of your 1099-B to the IRS. TurboTax will produce a Form 8453. You print the Form 8453 and attach the brokerage statement(s) to it.
Hey, I use Turbotax to have a peace of mind.
This is not helping me.
My question: Can I re-enter the data so the numbers get right?
Why is everything so complicated this year?
Thanks
Where can I find the "Cost or Adjusted Basis" on the brokerage company report? I have no idea where or how I'm supposed to have that information OR where I am supposed to enter it if/when I do get it!
The brokerage statement may not have all the information. If you earned/ bought stock through work, you may have had income in your w2. Add the corresponding income from those shares to your basis plus any sales expenses if the broker did not.
Note, the w2 for whatever year(s) was appropriate. You will want to check your records.
I want to urge you to create a financial notebook that is kept separate from your tax return- if you don't already. Keep it safe and each year, add your year-end statements from all your financial accounts plus a copy of your W2’s, your carryover information, and proof of your basis in your various investments. You must keep tax records from the time you purchase until sold/ loss used plus 3 years. It is very easy to lose track of disallowed losses / carryforwards/basis.
Perhaps the reason nobody is saying thanks or selecting a solution is because everyone is simply giving up. But to clarify the issue, when the cost or adjusted basis is required, turbotax doesn't bother to specify FOR WHAT. Just a blank form, sits there blank until the app/web page times out. Tried it in multiple browsers and the android app, the dumb thing never loads the form, and there is no indication whatsoever of which security requires the information. Google searches show similar complaints back to2019, and nothing has been done to fix it? The only fix is to enter summary information and file by mail? Why even have a broker import function at all?
Same here - I don't think I'll be doing this again next year.
Yeah I am stuck on this same page with Coinbase. I have uploaded the CSV several times but this always needs review. No idea what to put.
Cost or adjusted basis is the dollar amount you paid for the piece of the cryptocurrency. If that information is missing, TurboTax will ask you to review and enter the information. Otherwise, the capital gain will be inflated.
Here is a help article on how to upload a CSV file of crypto transactions.
I have the same issue here this a cryptocurrency, my broker send me a 1099-B, I have several charges of a x.xx amount less than 5.00 each and then it shows a COST BASIS FACTOR: 0. then 9 decimal amounts, is this the number we need to input? on each transaction?
The charges are not sales or purchases they are charges issue to manage the cryptocurrency (No wonder those who have a Bitcoin Mining are making a killing, a few dollar and cents almost every week adds up) so they are charges I am correct here?
Anyone has any idea what to enter in the worksheet is that decimal number I need to input? I basically one charge per week.
Anyone any idea?
If you can enter a summary, you can add the small amounts of fees and add a yearly total.
If you are able to get a summary, or summarize them yourself, you can enter as "Stocks Bonds, Mutual Funds"
(Long Term ((MORE THAN ONE YEAR)) Short Term ((ONE YEAR OR LESS)) Gain/Loss) (Date of Purchase- various)
If you are e-filing, paper-mail Form 8453 with the statement or 1099-B you have showing the transactions, within 3 days of an acknowledgement of the acceptance of your e-filed Federal Return.
Check the box on Form 8453 for Form 8949 (the last option)
Mail Form 8453 to:
Internal Revenue Service
Attn: Shipping and Receiving, 0254
Receipt and Control Branch
Austin, TX 73344-0254
(If you are mailing in a paper 1040, include the statement only with the paper return)
Be sure to separate any earned income (Mining, Air Drops) from trades. Enter any "Earned Income" on your Schedule C.
TurboTax (Online) does have a separate section for reporting Virtual Currency trades, but that is just a convenience for the customer. It all goes to Capital Gains/Loss.
DESKTOP:
Personal
Personal Income
I'll choose what I work on
Scroll down to "Investment Income"
"Stocks, Mutual Funds, Bonds, Other" START
Did you get 1099-B?" NO
Select "I'll enter a summary for each sales category"
If you have both Short Term and Long Term, you will need to enter each on a separate screen.
I understand however this are fees not purchases I have the cost based factor, so I guess I need to enter them individually basically they are expenses and should not be a Income, so in the worksheet of Turbo Tax each of them is under one line under each charge there are sales however TurboTax automatically place them under Date Sold and Sale Price 9Again they are not sales there are charges that the Grayscale BitCoin Trust BTC they apear as sales but they are NOT.
Question: what number should be on Cost or Other Basis the amount of the charge (Which is under Sale Price) or should I enter the cost base factor. (small fractional number like 0.000123456) (9 decimals)
All of them are not reported to the IRS bot Reported to the IRS under All 1099's under my broker accounts.
There are under L=Long Term(more than a Year) in this case.
any suggestion be appreciated!
@RGR3 I know this is weird but they ARE sales. They are fractional sales of your crypto that raised the money that was then used to pay fees.
And the fees are not deductible. I know!
So each of those listed transactions has a cost basis in the space provided for one. This should match the amount that you paid for the fractional amount of cryptocurrency that was sold to cover the fee you owed. If the amount listed under cost basis does not add up to what you paid for the currency then you'll need to do some research. You only need to pay tax on the profit from these sales so the cost basis is very important.
Outstanding I think is clear.
So if it is than simple why TurboTax reading the Broker 1099-B do not just ask to the cost purchase and the date of purchase or phrase it better if they have this works providing that you are dealing with the same block group of cryptocurrencies.
So just to be clear Proceeds is equal X
Date acquired is Date acquired
Cost is Y (Price per share of cryptocurrency on date of purchase)
Cost based Factor Z (Factor SOLD of share of Date of sold dispose)
So in the TurboTax worksheet for each individual Proceed asks for date sold (Which is the Date provided on the 1099-B from Broker) (In my case is every week) However in the top of the work sheet TurboTax asks for Long or Short term, if you indicate Long Term then the Date Acquired is fill with a "L" .
So the only left area to fill is the Cost or other Basis so here I have 3 possible values are:
Option 1 Enter the average cost of Cryptocurrency is this case is Y.
Option 2 is to enter the cost base factor which is fractional number of like you say of the sale which should be equal as the Proceed Value X which logical can't not be use I think because then Proceed and cost will then equal zero and if the IRS taxes on Proceeds then zero is not good for the IRS.
Option 3 is to enter the individual cost based factor (which is available on the 1099-B (so why TurboTax did not use it when importing the 1099-B (lazy programmers?)
So which option should be use? 1, 2 or 3
I also I notice that there is a bug in TurboTax I think at the top of the worksheet it ask Long or Short term but not of the individual proceeds are inserted with a L (Just a side note)
@RGR3 You should go with option 3. I have no idea why that wouldn't have imported in when you imported the 1099-B.
I appreciated your prompt response. Thanks a million so the fraction number it is.
I'm in the same boat as you. Have all these small weekly fees...1 example is .35 and cost based factor is 0.[removed]. In TurboTax, what do I put in "cost or other basis" ? It doesn't like the 9 digit number, it defaults to 0 when I type in. Do I just put in .35 ?
Thanks,
Alex
Do the fees you reference in your post relate to the maintenance of cryptocurrency? Prior posts make reference to cryptocurrency. If the fees do relate to some type of service fee in connection with holding your cryptocurrency, such fees would not be deductible. However, if the fees relate to commissions, then those types of fees get added to your cost basis.
To better understand your specific situation, provide additional information about the reason for the fees and the type of investments you have.