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After 1099-B import, one of my boxes 1e literally says "missing" on my actual 1099-B from Schwab.. what should I enter? Nothing? Or look up the cost basis I paid?

 
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5 Replies
Devin
New Member

After 1099-B import, one of my boxes 1e literally says "missing" on my actual 1099-B from Schwab.. what should I enter? Nothing? Or look up the cost basis I paid?

Unfortunately financial institutions won't always have the acquisition info about securities you sell. If you know what you paid for the shares that were sold, you should just enter that amount*. If you don't know what you paid, but you know that they were purchased and when they were purchased, you can generally look up historic stock values and use that to determine what you paid. If you don't know any of that, then you'll generally just have to use any info you can to estimate when they would have been purchased, and conservatively estimate what you paid using the lowest market value in that time range.

*If the stock is "covered" stock, then you should report a cost basis of $0, then indicate you have "additional info" and use the "corrected cost basis" field to enter what you've determined as the cost basis. This is unlikely because typically institutions will know the cost basis for "covered" assets, and if not they will report $0. Also, if shares have split, or there have been mergers with other companies, it's possible you may need to adjust the original purchase price to account for these activities. Most historical price sites will show you a "split-adjusted" price on historical dates that account for share splits, so those are easy to account for. Other activities like mergers can be more difficult to account for, so hopefully that doesn't apply in this case.

After 1099-B import, one of my boxes 1e literally says "missing" on my actual 1099-B from Schwab.. what should I enter? Nothing? Or look up the cost basis I paid?

My form 1099-B has 2 parts.. one says:
"short term transactions for which basis is reported to IRS"
and the next page says
"short term transactions for which basis is missing and not reported to IRS"

so the one that's missing is listed on the latter page. Funny thing, I never sold this stock and never got dividends and never made money on it, so idk why it's even on this list. So I'm going to leave 1e-cost basis blank, as it just says "missing" on my 1099-
B, and I'm not going enter the cost basis I paid for it. But I'm a little worried about this though

After 1099-B import, one of my boxes 1e literally says "missing" on my actual 1099-B from Schwab.. what should I enter? Nothing? Or look up the cost basis I paid?

I have a similar worry. Broker 1099B says basis is "missing". It's entirely clear that the basis is identical to the sale price, but reported as "missing". When I enter the correct amount, will some IRS computer flag this as an error? Dealing with IRS errors in the past has been a nightmare.

JohnB5677
Expert Alumni

After 1099-B import, one of my boxes 1e literally says "missing" on my actual 1099-B from Schwab.. what should I enter? Nothing? Or look up the cost basis I paid?

 

No, the IRS will not flag your entry of a different cost basis if it is entered properly.

 

If it is blank, leave it blank. (This will match the 1099-B posting)

  1. Scroll to the bottom of your 1099-B entry screen
  2. Check the box for The cost basis is incorrect or missing on my 1099-B 
  3. On the new screen None of these apply.
  4. I know my cost basis and need to make an adjustment.
  5. Enter your actual Cost Basis

 

@NewoysterNewoyster

 

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After 1099-B import, one of my boxes 1e literally says "missing" on my actual 1099-B from Schwab.. what should I enter? Nothing? Or look up the cost basis I paid?

Thanks.  Actually, I was not entering the data from a 1099B but downloading that 1099B from Schwab into Turbotax.

 

What I have done is to locate the specific short term sale in what Turbotax downloaded, changed the basis from 0 to the correct amount, then answered a few other questions in Turbotax about the transaction, all of which were "no".  Later, when Turbotax runs a review I will see if it complains. Meanwhile I am still trying to get the Broker to amend the 1099B.

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