1099-B Proceeds from Broker and Barter Exchange Transactions

[ljcsgar25]

I received a 1099-B from a Broker and Barter Exchange that has missing information. 

The Applicable Check Box is "X" - cannot determine Box "B" or "E"

Box 2: Type Gain or Loss Undetermined

Box 5: Noncovered Security

Box 6: Reported to IRS - Gross Proceeds

Box 12: Basis not reported to IRS

Turbotax requires an entry in Box "E" - cost or other basis (cannot be blank).  Also required is an entry in Box 2 - gain/loss (long or short).  I called the institution that issued the 1099-B and received no help.  They said the 1099-B was correct and complete, so I should call the IRS

How can I enter this 1099-B in Turbotax Premier?

[fanfare]

use Box B and enter basis = zero.

this will result in the highest possible tax on your transaction.

@ljcsgar25 

[Hal_Al]

Q. They said the 1099-B was correct and complete, so I should call the IRS?

A. No. They can't help you. You're expected to know the answers to these questions from you own records.

Q. How can I enter this 1099-B in Turbotax Premier?

A. For sale category, select Box E -long term non covered (this is almost always the correct category in your situation).

You get the cost basis from your own records. 

Unknown  cost basis

You have to report the sale on your tax return. Lacking any cost basis, the IRS will consider the entire sale amount as taxable. So, you need to make your best effort to determine the original cost basis, even if (worst case) it's a guess. Historical prices of publicly traded stocks are  readily available on the internet and should, at least, satisfy the IRS that your basis wasn't zero; just "google" “Historical Stock Prices". I use http://bigcharts.marketwatch.com/historical/. The stockholder relations dept. at the company may be able to help.

Unknown Basis

https://ttlc.intuit.com/community/investments/help/how-do-i-find-a-stock-s-cost-basis/00/25750

Unknown Basis & Date

https://ttlc.intuit.com/community/investments/help/how-do-i-find-a-stock-s-cost-basis-if-i-don-t-kno...

[JamesG1]

You will have to reconstruct the missing information from your personal records.

IRS form 1099-B is reporting a noncovered investment.   The broker does not have access to the cost basis and other information that you find missing on the form..

Do you have access to the cost basis, date of purchase and other information from your personal records?  

The record of the investment purchase may have been recorded with another broker, may not be required under current law or may have taken place before the current law was put in place.

IRS Instructions for Form 1099-B includes a lengthy definition of a noncovered security on page 9.

@ljcsgar25