1099-B Unclaimed property

[aruark12131]

I'm trying to file my taxes and don't know how to move forward with my 1099-B. My husband received a check for unclaimed property from WI in 2019. We received a 1099-B and a 1099-DIV from the WI Dept. of Revenue but it doesn't have all the information I need to file. This is all each one has on it.

The first 1099-B:

• 1a: Shares from Walt Disney Co
• 1c: The date the the property was sold (apparently 4/19/2017) however we did not receive it until 2019
• 1d: Proceeds: $9,210.65
• 5: Box is checked as a non covered security

The 1099-DIV:

1. 1a: Amount paid to you as a result of your unclaimed property claim:

• Total Ordinary Dividends $266.89

I've tried entering it under the 1099 income area however it won't let me move forward since it says that I don't have a box (info) for 1e ( Total cost basis) and I don't know what sales category to choose. The 1099-DIV lets me put in the 1a but not sure if I'm missing info for 1b (qualified dividends). I've seen some answers saying that we would have to go back on previous returns to correct this issue. How do I file these two 1099s on my tax returns? 

[AmyC]

1099-DIV - you don't have prior year info on a return since you just discovered this. Keep this one simple.

1. Payer's name - WI
2. Belongs to your husband
3. Box 1a $266.89
4. Continue
5. None of these apply
6. Continue

1099-B

1. Stocks,mutual fund, other
2. Did you receive a 1099-B?
3. Select Yes and continue
4. I'll type it in myself
5. Continue
6. Bank or Broker - enter issuer information
7. Continue
8. Did this include ESPP?, No
9. How many sales are on your 1099-B form? A few sales (1-3)
10. Do these sales include any other types of investments? No
11. Did you purchase all of these investments? Yes if you bought, No if you inherited
12. Continue
13. Continue
14. Sales Section - assuming stock was held more than 1 year since it was lost. Select long term non-covered
15. What type of investment did you sell?
16. Stock (non employee)
17. How did you receive this investment?
18. Select the method that applies to you
19. Description
20. # sh Walt Disney  (Example 35 sh Walt Disney Co) 
21. Date sold
22. Enter the date you received it in 2019. The IRS will send a letter and you will send copies of paperwork and explain that you received in 2019.
23. Cost of other basis
    • If you bought it, how much did you pay?
    • If you inherited it, how much was it worth when you inherited it?
    • If another situation, please reply with more information.
    • The IRS will always accept a zero for an answer and tax the full amount.
24. Select the cost basis is missing or incorrect on my 1099-B
25. Continue
26. None of these apply
27. Continue

[aruark12131]

This was stock bought for him by his parents when he was a child. So does that count as inherited even though his name was always on the stock?

[DianeC958]

No, it does not count as inherited stock is his name was on the account as an account holder.

If his name was on the account as a beneficiary, then Yes it counts as inherited stock.

@aruark12131

[marnoldy14]

@aruark12131 hi, dealing with nearly the same exact situation as your post here (wife gifted Disney as a baby, claimed the property from WI DOR in 2020, 1099B says the stocks were sold in 2017 etc). Was hoping you could follow up with what you did? Did you follow the instructions given here and claim the 1099B on your 2019 taxes? Did you enter $0 for your cost basis? Did you hear from the IRS like the answer says you would? Thanks in advanced for sharing your knowledge!

[MarilynG1]

@marnoldy14 Yes, you can use the steps outlined to enter the 1099-B in your return.

Click this link for info on How to Enter 1099-B. 

If you claim a Cost Basis of $0, you probably will not hear from the IRS, as you are paying taxes on the entire sales amount.

Or, you could try to look up the Cost Basis of the Stock when your wife received them as a baby. 

Click this link for more info on Taxes on Found Property.