I have a delisted stock that I just cashed out of. I got a whole $7. On the 1099 B, it says that there is no date for when it was acquired and no cost basis. The stock was delisted in 2016. How should I report it on the 1099 B? It is listed on the part as not covered securities and information not provided to the IRS Form 8949 Box F. Do I even have to report this sale? When I imported the information from Charles Schwab, it imported it into turbotax. So, I'm assuming I have to report it but how if it has so many problems? Turbotax live flagged the no date when acquired and no cost basis. But that is what is listed in the 1099 B. Also, when the stock delisted, my basis was gone. So I am assuming that I cannot claim the loss. Is that correct? For anyone who cares the stock was Linco, LLC and the ticker was LNCOQ. It was delisted in 5/24/2016. The cost basis for the original undelisted stock was over $8000. Am I correct to assume I cannot just import that cost basis over? Thank you for any thoughtful and knowledgeable answers.
On the 1099 B, it says that there is no date for when it was acquired and no cost basis. You must provide this information from your own records if the broker doesn't have it ... you must have bought it at some time for something.
Are we not supposed to completely duplicate what we see on the 1099 B from the institution? Can we just put our own dates on? Won't the IRS find it unacceptable? And if I have to put a date, do I put the date the stock was delisted, or do I put the date when the stock was first bought? Which are two different dates.
Are we not supposed to completely duplicate what we see on the 1099 B from the institution?
No, you are not necessarily supposed to exactly duplicate what's on the 1099-B. If the 1099-B does not have the cost basis and date acquired, you are supposed to enter that information from your own records. The date that the stock was delisted has no significance, and your basis did not disappear when it was delisted. The date acquired is the date that you originally bought the stock, and the basis is what you originally paid for it. (The broker might have removed the original basis from their reports for some reason, but your basis is still the original purchase price.)
You definitely should report the sale on your tax return because you will have a nice big capital loss to offset any capital gain you might have, or to offset up to $3,000 of ordinary income, or to carry over to future years.
Can we just put our own dates on? Won't the IRS find it unacceptable?
Yes, you can enter your own date. What the IRS would find unacceptable is not having a date, which is why TurboTax makes you enter a date.
And if I have to put a date, do I put the date the stock was delisted, or do I put the date when the stock was first bought? Which are two different dates.
You enter the date that you first bought the stock. The date that is was delisted has no significance as far as your tax is concerned.
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