Undetermined Long Term Transactions

Forum|Forum|4 years ago
March 12, 2022
20 replies
87 views

I have a sum reported on a 1099 B which my brokerage says is undetermined but their additional information says is "principal payment." I think this is a repayment on a REMIC from an inherited account, but I'm not sure. Do I owe taxes on this sum?

TurboTax Home & Biz Windows

HelenC12

Level 15

Yes, the gain on the stock sale is taxable to you. You'll need to enter a cost or other basis for the stock otherwise you'll be taxed on 100% of the gain. If you inherited this "REMIC", the cost basis of inherited stock is generally the market price of the stock on the date that the benefactor died.

In rare cases, the executor of the estate will make a special election to treat the stock differently. Check with the executor to be sure.

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LaughTrackAuthor

Level 5

Helen -

Thanks, but this isn't a sale I initiated and on my 1099-B, it occurred each month (in different amounts) over 7 months and the "additional information" from the brokerage firm says it is "principal payment." Isn't that more likely a return of principal? The quantity listed for each month is the same and isn't reduced even though proceeds are reported.

LaughTrackAuthor

Level 5

I've now checked my Annual Statement from this broker and it clearly describes the $ involved as "Return of Principal." As such, I have no idea why the broker's tax statement lists is as proceeds and reports in as "Undetermined" on 1099-B. I'm also mildy disappointed that TurboTax doesn't seem to support a filing of form 8949, which I have never before encountered.