On my 1099-B from my Broker, why do I have an item for Noncovered Securities with Undetermined Holding Period for an ETF I bought $300 worth in 2024, but never sold any?

It is possible it became worthless in which case you no longer own it, so it is reported as a sale. If so, you can adjust the cost basis to what you paid for it. You will see an option for that when you enter the investment sale information in TurboTax:

Fortunately, that's not the case.  It's actually up about 40% from when I bought it.  Ironically, at the time of this $.08 'sale', it was down a few percent.  I'm baffled.  It says I sold quantity of 0, with proceeds of $0.04, twice.  Cost basis is blank.  I did some math to see how many 'shares' $0.04 would have been on the dates in question, and then assumed the cost of those shares based on my original purchase date.  It was a sliver, which makes me think the quantity of 0 is just from rounding?

It ended up being $0.09.  In the absence any better idea, I think I'll enter short term non-covered, cost basis of $.09 and proceeds of $.08.  Sound crazy?  I really don't want to be audited over 8 cents :(.

Whether you report the transaction or not, retain a record of the transaction and all of your computations with your 2024 Federal income tax papers.  

It is hard to imagine that a tax authority will be inquiring about such a transaction at a later time but you never know.

Thank you, mrnedburns, for bringing up the question.  I agree for your $0.08 'sale,' you can ignore it, but I want to amplify your question because my total in the same section of my ETrade statement "Noncovered Securities with Undetermined Holding Period" is $122.93, which is an average of about $12/month from March '24 through December '24.

JamesG1 -  I don't know how to report this in TurboTax because I never sold any.  I thought maybe a distribution from the IBIT ETF, but Blackrock's website is clear the ETF doesn't distribute anything.  So I'm stumped on what to do in TurboTax.  Your guidance would be helpful.

Thank you!

It sounds like the management fees for the ETF, which are 0.25%, although a portion are currently being waived so the net expense is 0.12% of net assets.  In addition to the Form 1099-B, you should have a supplemental gain/loss statement which will show the shares that were sold and their cost basis.  If you didn't receive a supplemental statement, check your online account or contact your broker/dealer.  

Don't try to enter 1099-Bs with amount of less than ten cents.

@mrnedburns 

Try this. I just talked to Turbo  CPA Tax Expert.  Try this:

1. Put in  "Date acquired"

2. Put in Cost Basis of $ 0

3. Check mark on I paid Sales Expenses

4. Check mark on I don't want to make changes to cost basis

5. Then go on to the next item on the monthly expenses charged.

This worked for me. easy.

Thank you, @AuburnBasketball!  I'll follow your very clear instructions!