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1099B - How to Input Stock Sale with no Cost Basis

Hello, I have a 1099B stock sale that does not have Date Acquired and Cost Basis.  The 1099B says "Box 5: Non-Covered Securities - Code X (unknown holding period)".  I can get the "date acquired" and the "cost basis" using my own records.  Do I just enter the date on box 1b and cost basis on 1e, or do I need to input the "cost basis" as zero, and then input the cost on my records on box 1g (column g on form 8949) as adjustment? 

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2 Best answer

Accepted Solutions
rjs
Level 15
Level 15

1099B - How to Input Stock Sale with no Cost Basis

Just enter the date acquired in box 1b and the basis in box 1e. Do not enter it as an adjustment. When you select the "Sales section" select either "Short-term basis not reported to IRS" or "Long-term basis not reported to IRS" as appropriate. Do not select "Unknown term."

 

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MarilynG1
Expert Alumni

1099B - How to Input Stock Sale with no Cost Basis

Keep it simple.  If you have documentation of Date Acquired and Cost Basis, use those amounts (save the documentation).  

 

Indicate Short or Long Term.

 

Yes, you are not Adjusting, you are providing what the broker didn't.

 

Here's more info on No Date Acquired, No Cost Basis on 1099-B. 

 

@syoung123 

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6 Replies
rjs
Level 15
Level 15

1099B - How to Input Stock Sale with no Cost Basis

Just enter the date acquired in box 1b and the basis in box 1e. Do not enter it as an adjustment. When you select the "Sales section" select either "Short-term basis not reported to IRS" or "Long-term basis not reported to IRS" as appropriate. Do not select "Unknown term."

 

1099B - How to Input Stock Sale with no Cost Basis

for non-covered with wrong or no basis

enter the correct basis and Code "B" in col(f)

enter -0- in col(g)

 

@syoung123 

1099B - How to Input Stock Sale with no Cost Basis

Hello, thank you all for the replies.  The two replies that I received seem to have different solutions.  My 1099B does not have "date acquired" and "cost basis" (it says "--", so these two fields are blank?), and there is a description says "Box 5 with Code X" (unknown period).  The reply from "rjs" says to input the acquired date and cost per my own records to column b (date acquired) and column e (cost), and leave column f and g blank (since it is not adjustment, the broker just didn't provide the info) on form 8949.  The reply from "fanfare" says to put code "B" on column f and "0" on column g.  Please clarify which way that I should do?  Thanks much.

MarilynG1
Expert Alumni

1099B - How to Input Stock Sale with no Cost Basis

Keep it simple.  If you have documentation of Date Acquired and Cost Basis, use those amounts (save the documentation).  

 

Indicate Short or Long Term.

 

Yes, you are not Adjusting, you are providing what the broker didn't.

 

Here's more info on No Date Acquired, No Cost Basis on 1099-B. 

 

@syoung123 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

1099B - How to Input Stock Sale with no Cost Basis

rjs gave you the best advice assuming that you have the information needed to comply.  For a very long time brokerage houses were not required to keep track of your acquisition prices and dates, so they didn't.  Your brokerage obviously doesn't have that information on your stock sale, but you should.  The best way to avoid IRS scrutiny is to enter that information from your own records and indicate that it was not reported to the IRS by your brokerage.  They didn't report it because they don't have it.  Most likely this is a long term asset because brokerage houses are now required to keep that information on file and report it to the IRS when you make a sale.  Without a declared cost basis for your asset, the IRS could impose taxes on the entire gross amount of your sale.

1099B - How to Input Stock Sale with no Cost Basis

Thank you all for your replies and clarifications.

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