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1099-B question on reporting sale

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. 

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2 Replies

1099-B question on reporting sale

 
1099-B question on reporting sale
 

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?

 

the broker has no tax basis or other info for the 9 shares code X

so I would use $0 cost - trying to be practical based on the $$$ involved. You won't get any argument from the IRS

 

 

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. 

Code D tells the taxpayer and IRS both proceeds and tax basis reported  to IRS on long term hiooldings. I would use what they gave you for cost.  

 

the only strange thing is that the total proceeds are $200 but not split 50/50 since the same number of shares was sold in each lot. 

 

 

 

 

1099-B question on reporting sale

Re...

the broker has no tax basis or other info for the 9 

 

Confusing... A t and t spun WB off and I immediatly least although not sure why they would report it the way they do or what exactly I was supposed to type into turbo tax...

 

Anyone have any other thoughts on mybfirst post?

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