I am filing out my 8949 entries via the easy question and I can not get the explanation code to match my 1099-B.

Forum|Forum|7 years ago
June 1, 2019
6 replies
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I am filing out my 8949 entries via the easy question and I can not get the explanation code to match my 1099-B. Worse the codes appear to be adding on each other. How can I remove the old codes? How can I enter them to match the 1099-B?

TurboTax Home & Biz Mac

fanfare

Level 15

all very interesting. What is the Code that shows on your 1099-B document.?

solomoni88Author

Level 2

The 1099-B shows codes X, A, D - I believe these correspond to not covered, covered short term sale, covered long term sale. During the easy step process I entered the figures manually as my brokerage/company does not support automatic download and I did not enter any of the codes. However on the 8949 two strange things appear - first the transaction is reporting as if I did not receive a 1099-B and second in the field (marked adjustment field) the letter "M" is input.

fanfare

Level 15

X,A and D are not Codes, they are sales category.
X means your broker does not know the acquisition date for that one, and probably not the basis either. you must supply that info.

Code M appears when you use the "Enter a Summary " option. Don't do that unless you have 50-100 or more transactions to report. (ie too many to enter by hand)

solomoni88Author

Level 2

ok thank you. Final question on those transactions that have a X sales category - they were sold as part of a block including both short term and long term stocks - do I need to list them as a separate transaction inorder to input the cost basis for it uniquely or simply reflect the cost basis for the entire amount?

fanfare

Level 15

short term holdings go in Part I and long term in Part II. it is highly unlikely that your cost basis was the same.

fanfare

Level 15

you can't enter codes directly. More than one Code per transaction can happen.

Delete the transaction and try again if you have too many wrong codes.