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New Member
posted Apr 3, 2025 8:41:44 AM

1099-B from Etrade for stocks that were transferred in kind to Vanguard

How do I tell the IRS that the stocks were not sold - but transferred in kind to Vanguard?  Etrade show a $3235 long term gain on covered and non covered securities, but the stocks have not been sold.  I understand I need to provided the correct cost basis to Vanguard for future sales.

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3 Replies
Level 15
Apr 3, 2025 8:44:51 AM

contact E-trade to correct the 1099-B.  This should be much simpler than trying to convince the iRS that the 1099-B is wrong.  This assumes the securities were transferred from one taxable account to another. A transfer from a tax-exempt account to a taxable account is taxable. 

New Member
Apr 3, 2025 12:34:07 PM

both accounts were taxable.  Contacted E-trade - they say the form is confusing because the stocks were held in a US based employer that was merged or acquired - ticker symbols changed.    So their response is - consult a tax professional to figure it out - we can't help you.  They do reference 60 shares of stock in a Long term noncovered securities category,  without a cost basis defined - and then the fine print say these are not subject to IRS cost basis reporting regulations. 

 

Think I may need to file an extension to get a professional to look into it for me - no issues with the 20 other forms we received, just this one.  

Expert Alumni
Apr 3, 2025 4:46:08 PM

You could enter a cost basis equal to the sale proceeds so that no taxable income is shown. Since you didn't receive the proceeds, they wouldn't be taxable, so you would get the correct result by doing this.