I sold a small number of Warner brothers stock that spun off AT&T this year. I posted a question in another Forum as to how to calculate the cost basis. Because the AT&T was gifted to me 30+ years ago , it seemed easier just to put a zero in the cost basis when prompted during the interview and just pay the tax on the $200 payment I received from the sale .
I was able to import the 1099B information from computershare.
It brought in exactly what I see on the paper 1099B. My question is since I sold 18 shares all at once, why does the 1099B break the sale up into 2 rows?
On the form row one has the following information. Applicable checkbox on form 8949 has an X. Under description it says 9 of 18 shares sold. There is no date aquired. Under date sold is the date I sod them. Proceeds is $105. The check if noncovered security has an X.
Row 2 has a D under the applicable check box on Form 8949. It again says 9 of 18 shares sold under description. It again has the same date of sale as row 1. Proceeds is $95. Cost basis is $286. Type of gain or loss is Long Term. Finally there is an x under check if basis reported to irs.
At some point during th TT interview I selected that the sale was a derivative of a gift and that I needed to change the cost basis. I put 0 in. But I believe I had to do this twice once for each row.
Does this one make sense?
I ask because I did find a Capital gains and loss schedule generated this year.
It says proceeds sale price $200 cost basis $285. Gain or a loss negative $87.
Capital gains distribution $118 . Net long-term capital gain or loss $31.
Does any of this make sense? where did $118 and $31 come from. Did I answered questions wrong along the way. I thought I would just be having a capital gain of the Two hundred bucks...
I know this isn't much. And I shouldn't get worked up about it but I'd like to do it right.
