I had a Stock Plan Account from my company and sold the company shares in July, 2020. I received a Form 1099-B from the investment company who managed the plan. I was allocated shares, some of which were used to pay taxes (not sure if that was just federal or federal and state taxes). The net shares I sold were 50. The shares were given to me in April 2019 (I did not purchase the shares).
In the Gain/Loss section of my Turbo Tax PA taxes it shows I have a $320 gain in the Long Term Noncovered line (New Sales Price of $3643 and a Cost Basis of $3323).
I am prompted to check one of four boexes:
1. "This sale is not taxable in PA". -- I am not sure if it is or not.
2. "This asset was acquired before June 1, 1971...". -- it was not
3. " This asset was used for both business and personal purposes". --- it was not
4. "This sale requires an adjustment to the basis of the asset" -- I am not sure what this means
Turbo Tax says PA treats cost basis differently than the federal government does.
My Question: Which box should I check, #1 or #4.
Thanks for your help!!
The first option applies to the sale of Pennsylvania tax-exempt obligations, such as state or local bonds, but you said it doesn't apply to you, and nor do the next three boxes evidently. So, assuming the first three boxes don't apply to you and you need to choose an option, you should check the last box.
Follow the prompts after checking the fourth box and you can post a follow up question if you need further guidance.
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