How do I record Non-Covered Securities on my 1099B?

[Rod221]

Hi Tom.   I also have a non-covered stock sale due to a "reverse stock split". this would have to be a Long-term non-covered basis because this was acquired over 40 years and I did not actively purchase it, it was given to me as an employee benefit for the company (GE). It is just a small amount of stock, 15 shares. I have no idea what the requisition date was....1981, 1982?  Is it okay to estimate the date in the Turbo tax? I will also take your advice and use $0 as the cost basis, since I have NO clue.

[DianeW777]

Yes, you can estimate the date if you have a general idea but no definite documents to provide the exact date.

And zero might be a good call since you don't know the cost basis that was included in your W-2, however there are many websites that can give the value of stock on a given day to give you an idea.  It's up to you, as long as you use reasonable data it's not going to be an issue to have some cost basis even if you use the lowest by checking a few different dates.  Then keep the information with your tax file.

@Rod221

[Edited: 03/07/2022 | 1:17p PST]

[rwrasberry1]

So since my statement has no cost, and I kept detailed records, (on Turbo Tax) do I MARK the box followed by "the cost basis on my statement is incorrect"?

[JohnB5677]

That is correct.  Once you check the box these questions will follow:

• Let us know if any of these situations apply to this sale = None of these apply
• We noticed there's an issue with your cost basis...Let us know if you'd like to make any changes
  • I know my cost basis and need to make an adjustment
  •  Enter Actual cost basis

Be sure that you've kept a record of how you came up with the adjustment.

This may be a useful tool:  Historical Stock Prices

[EllenLB]

This is very useful information, Unfortunately, I didn't find it until I changed a bunch of stuff in the 1099-B. These instructions should be part of TurboTax help on the form!!!! Shame on you, Intuit, for not including this where it is needed.

[David powell]

Can I claim zero for cost basis for noncovered securities sold if I am unable to determine cost basis. This was for a fractional share sold through a drip?

[PattiF]

You could claim $0 for the cost basis of the fractional share. If the proceeds are a minimal amount, a cost basis of $0 is reasonable.

@David powell 

[pmjm2]

Non-covered sale of Stock. 

Where are the proceeds

[HelenC12]

To enter your 1099-B form, see Where do I enter or import a 1099-B? 

The proceeds are reported on your 1099-B Box 1d Proceeds. 

• If you're asking where did your employer give you the money, it was included in your wages. See your W-2 Box 1.

For noncovered securities, you are responsible for reporting cost basis information to the IRS when you file your taxes. If you do not report your cost basis to the IRS, the IRS considers your securities to have been sold at a 100% capital gain, which can result in a higher tax liability.

• If you don't know your cost basis, please see How do I find a stock's cost basis?

Additional information: 

Employee Stock Purchase Plans

How do I enter Employee Stock Purchase Plan (ESPP) sales in TurboTax?

Do I need to enter ESPP transactions?

@pmjm2