Box 1b and 1e on form 1099-B have "unknown"...Turbo tax won't allow unknown as a choice. what can I do?

[ColeenD3]

If you don't have the basis amount, or have no way to find it, the basis defaults to zero.

[hippler49]

Thank You for the information. I have contacted my investment representative and he has told me to expect a new 1099-B with something other than unknown in Box 1b and 1e! So I am waiting to see!

[JohnB5677 · Accepted solution]

This is a critical point.  If you do not have a basis recorded on a sale, the entire amount (100%) of the selling price (Proceeds) will be taxed.  This will be the case even if you had a loss on a stock. 

If the investment representative can not come up with ALL of the basis data, it would be worthwhile for you to gather it the best you can.  Document how you went about gathering the data, and that will be your documentation if the IRS were to question it.

[milwik]

Same situation except that I know what my basis is.  Question remains - what to enter into Box 1b and 1e when entering the 1099-B form into TurboTax.  If I enter anything other than '*', am I not altering a form already reported to the IRS, thereby throwing a flag? 

BTW, there is a note below the form:

   "*Asset was transferred onto exchange. Cost basis obtainment originated off exchange."

Moreover, my form also has a:

X Box 5: Check if noncovered security

Turbo does not show a Box 5 on the entry screen

[JulieS]

For box 1b enter the date of purchase, or the word Various, if multiple purchases were made. In box 1e, enter you basis according to your records. 

Box 5 indicates this is a non-covered security. That means your broker either doesn't know your basis, or is not required to report you basis to the IRS. 

When you report a non-covered security, you have to fill in the Date acquired (box 1b) and the Basis (box 1e) based on your own records. This is not considered altering an IRS form. 

Box 5 doesn't appear on the screen in TurboTax, but the Holding period field is based on whether the transaction is short term or long term, covered or non-covered. 

[hippler49]

I contacted my investment representative and he was able to get a revised 1099-b that had actual figures instead of "unknown"

[JeanLaFeet]

IRS Instructions for Form 1099-B state that if Box 5 is checked, Boxes 1f and 1g may be blank.  However, TurboTax doesn't provide the options to enter data in Box 5, as well as Box 6 or Box 12, where I also have information reported from my ban.  TurboTax should correct these omissions.  

[JeanLaFeet]

Addition to previous Reply:  IRS Instructions state that if Box 5 is checked, Boxes 1b and 1e may be blank.  However, Box 5 is no available.  TurboTax should correct this omission.

[JulieS]

Yes, those are the instructions for preparing Form 1099-B. 

When you report your 1099-B on your tax return, you are preparing Form 8949 using information from your 1099-B. 

The instructions for Form 8949, column b say:

"Enter in this column the date you acquired the property. Enter the trade date for stocks and bonds you purchased on an exchange or over-the-counter market. For a short sale, enter the date you acquired the property delivered to the broker or lender to close the short sale. 

If you received a Form 1099-B (or substitute statement), box 1b may help you determine when you acquired the property.

Inherited property. Generally, if you disposed of property that you acquired by inheritance, report the sale or exchange on a Part II with the appropriate box checked (D, E, or F). Enter “INHERITED” in column (b).
Stock acquired on various dates. If you sold a block of stock (or similar property) that you acquired through several different purchases, you may report the sale on one row and enter “VARIOUS” in column (b). However, you must still report the short-term gain (or loss) on the sale on Part I and the long-term gain (or loss) on Part II."

Column e instructions

"The basis of property you buy is usually its cost, including the purchase price and any costs of purchase, such as commissions."

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