topic Capital Gain on Stock Sale Issue in Get your taxes done using TurboTax

Capital Gain on Stock Sale Issue

Oleanmike — Fri, 31 Jan 2020 15:36:09 GMT

I was awarded company stock in 2015 at which time I paid income tax in that year. I sold the stock in 2019. Fidelity held the account for the entire time. In my 2019 tax statement from Fidelity they have reported the sale as "Short term sale - basis not reported to the IRS". Turbotax treats it as a short term sale and calculates the tax as such. The entire amount of the sale was reported as short term capital gain.

First, since I paid the tax in 2015 isn't the cost basis the share price on the day I got the stock in 2015? I do know the price on that date.

Second, how do I change the date of acquisition to 2015 so that it is treated as a long term gain and not short term?

Re: Capital Gain on Stock Sale Issue

LeonardS — Fri, 31 Jan 2020 16:04:30 GMT

Yes, your cost basis is the price you paid in 2015.

This TurboTax link How do I find a stock's cost basis? has information you may find useful

To enter/edit your Form 1099-B information into TurboTax follow these steps.

Open TurboTax if it is not already open.
Enter Form 1099-B into the search box.
Click on Jump to Form 1099-B.
Follow prompts to enter/edit your information.

Re: Capital Gain on Stock Sale Issue

Oleanmike — Fri, 31 Jan 2020 16:32:19 GMT

Leonard - thank you for your answer! I did as you suggested, but don't see how the form is edited. Along the bottom the choice is to print, delete or close the form. How do I edit it?

I spoke with Fidelity, they said that the cost basis and date of acquisition should be edited on form 8949 which I see but again don't know how to edit.

Re: Capital Gain on Stock Sale Issue

LeonardS — Fri, 31 Jan 2020 18:03:39 GMT

The sale of your stock was reported to you on form 1099-B. This is the form that you will use to report the sale of your stock on your tax return. You do not have to do anything with Form 8949.

From your question it appears that the form does not have an entry in box 1e cost or other basis. When you obtain the cost basis then you will enter this information when you complete Form 1099-B as well as the purchase date, sale date, and proceedes from the sale.

This TurboTax link Where do I enter a 1099-B? has directions on how to enter data into Form 1099-B