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?
all very interesting. What is the Code that shows on your 1099-B document.?
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.
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)
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?
short term holdings go in Part I and long term in Part II. it is highly unlikely that your cost basis was the same.