What to do with 1099-B from Prosper after 1099-OID is entered in TT?

[loyal-but---user]

Dear TT Experts,

I got a 1099-OID and 1099-B from Prosper Funding.

The 1099-OID is straight forward and already entered into TT.

The 1099-B lists multiple entries under bold-faced headings of:

1. Proceeds from Broker and Barter Exchange Transactions   Original (1 entry, $15 proceeds)

2. Short-term transactions for which basis is not reported to the IRS-Report on Form 8949, Part 1, with Box B checked (5 pages, each with multiple entries, total $35 proceeds)

What should I do?

Thank you very much!

[GeorgeM777]

One option is to see if you can import your 1099-B into TurboTax.  Importing your 1099-B will be easier and less time consuming than manually entering each transaction. To see if you can import your 1099-B, follow these steps:

1. Log into your account
2. Select Income & Expenses
3. Scroll down the page to Investment Income
4. Select Stocks, Cryptocurrency, Mutual Funds...etc
5. Respond to the questions that appear and search for Prosper Funding on the page which gives you the option to import your 1099-B.

If you cannot import your 1099-B, then you will have to manually enter the trades.  On the page which gives you the option to import your 1099-B, there is the option to "Ill type it in myself."  

Because basis was not reported to the IRS, you will need to complete Form 8949.  In other words, you do not have the option to enter a summary of the short-term trades on Schedule D.  

@Loyal-but--user

[loyal-but---user]

Appreciate the prompt advice! FYI - Prosper Funding does not support TT download.

A quick followup question re the actual steps in TT:

A. Do I start with

     Investment Income / Stocks, Mutual Funds, Bonds, Other

     for each item on the 1099-B?

     (note: there are 20+ items)

B. Will this section automatically complete Form 8949 or must I manually complete it?

C. If I must complete Form 8949 myself, where do I find it and how do I complete it in TT?

Thank you so much!

[GeorgeM777 · Accepted solution]

A. - Yes, start with Investment Income, then Stocks, Cryptocurrency, Mutual Funds...; however, you won't need to go back to the very beginning each time because when you are done entering one trade, you will see the page Your investment sales summary.  At the end of your sales summary list is the button Add more sales.  Just select Add more sales and repeat the process for the next trade.

B. - Yes, Form 8949 will automatically be populated "in the background" as you enter your information.  When you are on the page Now, enter one sale... in the Sales section you will see the option to select whether the trade was covered or noncovered.  Upon selecting noncovered, Form 8949 will populate with the information that you enter.  You do not need to manually complete Form 8949.

C. - As noted above, Form 8949 will automatically populate with the information that you enter about your Prosper transactions.  There is no need to separately prepare Form 8949 and further, there is no need to print Form 8949 and hand mail it to the IRS.  Form 8949 will be generated and can be e-filed, along with your other tax forms, when you are ready to e-file your return.   If you want to see what Form 8949 looks like, in a Google search bar, type 2021 Form 8949.  In the search list you will see the IRS Form 8949 and probably the IRS instructions for Form 8949.  Both of these documents are downloadable pdf files.  

@loyal-but---user

[robezr17]

I have a 1099 B form on my brokerage statement, I entered the short term and long term sales proceeds cost by line item.  on the form 8949 when I view it, it says sales not reported on my 1099 B, but these are reported on this form.  How do I correct this in turbo tax.? on the 1099 B the statement states: report on 8949part  1 box A, but on my TT form it says Box C.

Please help

[AmyC]

When you entered the information, you selected no instead of yes for the 1099-B. Delete your transactions and enter them again as 1099-B transactions.

@robezr17