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yofu1
Level 2

1099B

 

Please explain 1099B:

Box C Short Term Sales not reported to IRS.

Box F Long Term Sales not reported to IRS.

Sale Category:

Box A Short Term Covered

Box E Long Term noncovered.

1 Best answer

Accepted Solutions
gloriah5200
Expert Alumni

1099B

The difference is that you must enter the adjusted cost basis and date of acquisition on non-covered (nonreported by the broker) transactions and it is not required on covered (reported by broker) transactions because it was already reported by the broker to IRS on those transactions.

 

Here is a link to the tax year IRS 2020 Form 1099-B Instructions:

IRS Instructions for Form 1099-B (tax year 2020)

 

Here is a link to additional information:

Covered vs noncovered 1099-B transactions

 

Please explain 1099B:

Box C Short Term Sales not reported to IRS-asset held one year or less (Broker did not report date of acquisition and cost basis. Also referred to as non-covered)

Box F Long Term Sales not reported to IRS. Asset held more than one year(Broker did not report date of acquisition and cost basis. Also referred to as non-covered)

Sale Category:

Box A Short Term Covered-Asset held one year or less (Broker did report date of acquisition and cost basis.)

Box E Long Term noncovered. Asset held more than one year (Broker did not report date of acquisition and cost basis. Also referred to as non-covered)

 

[Edited 04/08/2021|5:28 pm pst]

View solution in original post

3 Replies
ErnieS0
Expert Alumni

1099B

The various codes on your Form 1099-B affect how your sales will be reported on your income tax return. TurboTax will enter this in the right place.

 

Box A means you bought and sold a stock within a year's time and your broker reported the sale and purchase price to the IRS.

 

Box C means you bought and sold something within a year's time and your broker was not required to report the sale to the IRS (however you must still include it on your income tax return).

 

Box E means you bought and sold something after holding it for more than a year. Your broker reported the sale price to the IRS but not the cost. Your broker may provide you with the cost or you may have consult your records to find the cost.

 

Box F is similar to Box C only you held the item for more than a year before selling it. However you broker was not required to report the sale to the IRS.

 

Related Resource:

yofu1
Level 2

1099B

Thank you for the clarification.  However, for BOX C and F, since the sales were not reported to IRS, what will be the consequences of non reporting in the return as compare to reporting? 

gloriah5200
Expert Alumni

1099B

The difference is that you must enter the adjusted cost basis and date of acquisition on non-covered (nonreported by the broker) transactions and it is not required on covered (reported by broker) transactions because it was already reported by the broker to IRS on those transactions.

 

Here is a link to the tax year IRS 2020 Form 1099-B Instructions:

IRS Instructions for Form 1099-B (tax year 2020)

 

Here is a link to additional information:

Covered vs noncovered 1099-B transactions

 

Please explain 1099B:

Box C Short Term Sales not reported to IRS-asset held one year or less (Broker did not report date of acquisition and cost basis. Also referred to as non-covered)

Box F Long Term Sales not reported to IRS. Asset held more than one year(Broker did not report date of acquisition and cost basis. Also referred to as non-covered)

Sale Category:

Box A Short Term Covered-Asset held one year or less (Broker did report date of acquisition and cost basis.)

Box E Long Term noncovered. Asset held more than one year (Broker did not report date of acquisition and cost basis. Also referred to as non-covered)

 

[Edited 04/08/2021|5:28 pm pst]

View solution in original post

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