topic How do I enter cost basis for non-sale undetermined term transactions for noncovered tax lots? in Get your taxes done using TurboTax

How do I enter cost basis for non-sale undetermined term transactions for noncovered tax lots?

pnagboth1 — Wed, 15 Jul 2020 05:37:23 GMT

I don't have any sale transaction for GLD but I see some items on 1099B* as "UNDETERMINED TERM TRANSACTIONS FOR NONCOVERED TAX LOTS. Turbo tax is asking for cost basis but this is not a sale transaction. In Additional Information I see "Principla payment cost basis factor 0.xxxxxxxxx"

Re: How do I enter cost basis for non-sale undetermined term transactions for noncovered tax lots?

Kiki — Wed, 24 Aug 2022 10:18:06 GMT

I am having an exactly same problem for 2021. How did you report that at last?

I purchased GLD (and other ETF) a little by little in multiple number of dates so some of them should be long term (held more than a year) but some should be short term.

How can I answer to TT question either Long term or Short term?

In Additional Information I see "Principal payment cost basis factor 0.xxxxxxxxx"

Does this info help any ways to find your costs basis?

Any advice or suggestions would be very appreciated!

Re: How do I enter cost basis for non-sale undetermined term transactions for noncovered tax lots?

fanfare — Wed, 24 Aug 2022 11:20:01 GMT

when you put GLD in your portfolio you have 12 monthly SELLs per year. That's how it works.

If your holding is small enough the basis is negligible, i.e. Zero.

A tiny proceeds of less than half a dollar rounds down to zero also.

@pnagboth1

Re: How do I enter cost basis for non-sale undetermined term transactions for noncovered tax lots?

Critter-3 — Wed, 24 Aug 2022 11:33:42 GMT

You will have to enter the needed information using the info from your own records to fill in the blanks. If one broker's entry has long and short term sales combined in it then you must split that into 2 separate entries. And for simplicity you can combine multiple sales into one short term and one long term entry. Simply use the term VARIOUS for the purchase date and 12/31/21 for the sale date on each of the combination entries.

Re: How do I enter cost basis for non-sale undetermined term transactions for noncovered tax lots?

fanfare — Wed, 24 Aug 2022 11:40:19 GMT

you can combine various BUY transaction sold at once, not SELL transactions.

In this scenario, Various cannot be used .

In this scenario I would not even list transactions that are negligible.

Re: How do I enter cost basis for non-sale undetermined term transactions for noncovered tax lots?

Critter-3 — Wed, 24 Aug 2022 11:52:07 GMT

I have been doing this on my client's returns successfully for several years ... never got a an IRS notice even if I combine several sell date into one entry ... the IRS only looks at the totals not the individual dates.

Re: How do I enter cost basis for non-sale undetermined term transactions for noncovered tax lots?

Kiki — Thu, 25 Aug 2022 01:42:42 GMT

fanfare and Critter-3, Thank you for your reply!

I have 6 ETFs and 60 transactions total, but each of them are small $$$. Total proceeds is $27.41

The same situation in last year, I decided to use cost=proceeds (So basically $0 profit) by an opinion I was told by an expert. I though that's fair to do since my form says; Undetermined (basis not reported to the IRS) Total $27.41, Cost basis$0.00, Net gain $0.00. And Total Gross proceeds investment expenses is $27.41 (exactly same as the proceeds) . And, The federal tax laws eliminated the deduction of investment expenses through the year 2025.

But I still don't know if this is ok or not.