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Level 2
posted Feb 27, 2024 6:33:21 PM

1099B problems with Morgan Stanley

Just wanted to follow up for anyone still having issues.  Before you attempt to download the corrected files for Morgan Stanley, I suggest deleting all the 1099-B, 1099-Misc, 1099-Int and 1099-Div entries from both Etrade and Morgan stanley to ensure you are starting with a clean slate.  Once you have done that save your return, then download the new E-Trade and Morgan Stanley files.  If you have sold Puts during the year and held them until expiration, the basis will be 0, because you didn't pay anything for them.  The 1099-B will show a 0, but Turbo Tax, at least in my case merely wanted me to verify the basis was correct.  All I needed to do was to enter a 0 for those trades that I verified were Puts Sold to Open, and once that was done all of my errors were gone.  I wanted to add this last part about the Puts because anyone not experienced in the reporting of those transactions for tax purposes might think there are still issues with the program or file, and there isnot.

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