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Level 2

Solved

1099-R tax not determined

Forum|Forum|3 months ago
February 11, 2026
2 replies
0 views

I received a1099-R for stock sales. Box 1 and 2a have the same amount. Box2b Tax amount not determined is checked. How do I account for the cost I paid for the stock so the taxable amount is reduced by cost I paid?

Best answer by dmertz

Expert Reviewed

Assets within a retirement account are not subject to capital gains treatment, so the purchase price of the shares is irrelevant. The purchase price is not used in calculating the taxable amount of the distribution.

The details you provided suggest that the distribution is from a traditional IRA and that the IRA/SEP/SIMPLE box is also marked on the Form 1099-R provided by the payer. If so, the entire distribution is taxable unless you have basis in nondeductible traditional IRA contributions. If you have basis in nondeductible traditional IRA contributions, TurboTax uses Form 8606 to calculate the nontaxable and taxable amounts of the IRA distribution.

Level 15

Can you please tell us the code in Box 7 on the 1099-R?

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hopkinssbAuthor

Level 2

Box 7 has a value of 7 and IRA/SEP/SIMPLE box is checked.

This is a rollover IRA from over 26 years ago.

From what I remember now, this is a tax deferred account, therefore all distributions are taxable.

Thanks for your help

dmertzAnswer

Level 15

Expert Reviewed

Assets within a retirement account are not subject to capital gains treatment, so the purchase price of the shares is irrelevant. The purchase price is not used in calculating the taxable amount of the distribution.

The details you provided suggest that the distribution is from a traditional IRA and that the IRA/SEP/SIMPLE box is also marked on the Form 1099-R provided by the payer. If so, the entire distribution is taxable unless you have basis in nondeductible traditional IRA contributions. If you have basis in nondeductible traditional IRA contributions, TurboTax uses Form 8606 to calculate the nontaxable and taxable amounts of the IRA distribution.

hopkinssbAuthor

Level 2

Box 7 has a value of 7 and IRA/SEP/SIMPLE box is checked.

This is a rollover IRA from over 26 years ago.

From what I remember now, this is a tax deferred account, therefore all distributions are taxable.

Thanks for your help.