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

[solomoni88]

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?

[fanfare]

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

[solomoni88]

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]

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)

[solomoni88]

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]

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]

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.