1099-B - Sales Section help!

[a_big_dumb_animal]

Hey all,

TurboTax is asking for the Sales Section, one of 7 options:

- Short-term basis reported to IRS (covered)

- Short-term basis not reported to IRS (noncovered)

- Short-term did not receive 1099-B form

- Long-term basis reported to IRS (covered)

- Long-term basis not reported to IRS (noncovered)

- Long-term did not receive 1099-B form

- Unknown term basis not reported to IRS

On my 1099B, I have the following

Above the table of the transactions:

"2022 Form 1099-B Proceeds From Broker and barter Exchange Transactions 

Noncovered Securities with Undetermined Holding Period (Consider Box5 (noncovered Security) as being checked and Box 12 (basis is reported to the IRS) as not being checked for this section. These transactions should be reported on Form 8949 Part I or Part II with Box C or E checked.)"

* This makes me think the answer "Unknown term basis not reported to IRS"

In Box 6 - "Net Proceeds Reported to IRS (Box 6) --- these both have an X

* This throws me for a loop as now "not reported to IRS" from the above, is no longer true?

My 1099-B has two line items, one for employee and one for employer contributions. These transactions technically took place on the Toronto Stock Exchange - which is why (I think) this is a not overly clear. The life of these transactions spanned roughly 13 months (basically all considered short technically).

So my gut says these have to be one of these:

- Short-term basis reported to IRS (covered)

- Short-term basis not reported to IRS (noncovered)

- Unknown term basis not reported to IRS

Thanks!

[MaryK4]

You are correct that because these were Canadian securities, the reporting information is different.  In this case, Unknown term basis not reported to IRS is the best option.  You will need to try to find the value and dates on your own.

[a_big_dumb_animal]

Thanks @MaryK4 

When you select uknown, it later asks the below. It's odd because it's not either or ... the wording here is confusing.

I acquired on multiple dates for a ~14 month time span. The below options are in either/or for all-in as short or long when reality is, it's a combo.

The second answer is actually more accurate, as I only acquired some about 3 months prior to that 05/27 date.

Selecting either of the below, doesn't change the amount of my return, so I'm hopeful it really doesn't matter.

We just need to know if you acquired your XCompanyStockX before 05/27/2021. If you did, then it's a long-term gain or loss.

Yes, I acquired this entire investment more than a year before I sold it

No, I didn't acquire any part of this investment more than a year before I sold it

[MaryK4]

If you select Yes, it is a long term gain.  If you select No, it is a short term gain.  If you already indicated it was short term or long term, it should not affect your amount but it should make a difference in the tax-  you can check on the summary page as shown below.  If you need to change, it is easier to delete and re-enter than try to go through and make the change.  @a_big_dumb_animal 

[a_big_dumb_animal]

Thanks @MaryK4

Follow up, and hopefully finally question. 

My 1099b has two line items. One for employee, one for employer contributions. 

They matched 50% up to 6%.

My contributions were $10k, no discount. Their contributions were $5k.

So their contributions... I technically didn't pay for. Their contributions are also listed on my W2 in box 12b - marked 'D'. The number is very close (not identical) to the cost basis ... so I thought this was that, but it might be my 401k?

With this said, do I enter adjust cost basis at actual cost, or go with $0, for the employer line item on my 1099b? (Note that the cost is NOT on the 1099b and I had to retrieve this from the brokerage). 

Thank you 

[ThomasM125]

Code D in box 12 on your W-2 form is your 401-K retirement contribution, so that has nothing to do with the issue at hand. I assume you are dealing with an employee stock purchase plan. If so, depending on how long you held the stock some of the gain may be taxable as ordinary income and if so it would be reported on your W-2 form in box 1. If that happend, you can add that amount to your cost basis of the shares you sold as reported on your form 1099-B. Otherwise, your cost basis would be what you paid for the shares, which could be $0 if the company gave them to you. So, you need to scrutinize the box 1 entry on your W-2 to see if there is any additional income reflected there in addition to your gross pay.