Box 7 on form 1099-B

6 replies
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Hi,

Box 7 of form 1099-B says "If checked, you cannot take a loss on your tax return based on gross proceeds from a reportable change in control or capital structure reported in box 1d". I think I get this but how do you "prevent" TurboTax from doing the math and reporting the negative number/loss?

Thanks!

TurboTax Premier Online

Anonymous_Answer

Level 15

I believe you have encountered a scenario that is not supported by TurboTax.

When Box 7of Form 1099-B is checked, the program does not limit losses based on gross proceeds from a reportable change in control or capital structure reported in Box 6 of that form.

See https://digitalasset.intuit.com/DOCUMENT/A7LDFEv4x/040120-2019-unsupported-calcs-L1FQfTTgn.pdf

Anonymous_Answer

Level 15

I believe you have encountered a scenario that is not supported by TurboTax.

When Box 7of Form 1099-B is checked, the program does not limit losses based on gross proceeds from a reportable change in control or capital structure reported in Box 6 of that form.

See https://digitalasset.intuit.com/DOCUMENT/A7LDFEv4x/040120-2019-unsupported-calcs-L1FQfTTgn.pdf

leafboatAuthor

Level 2

Thanks for the response! Just to clarify, when you say include the "notice", do you mean include a copy of the 1099-B? Thanks again!

Anonymous_

Level 15

@leafboat wrote:

....when you say include the "notice", do you mean include a copy of the 1099-B?

Notice or letter that you receive from the IRS, not a copy of the 1099-B.

See https://taxpayeradvocate.irs.gov/get-help/letter-from-the-irs

Anonymous

the only way that would work is if you use the "corrected basis" box to show cost = to sales proceeds. thus you would show the sales proceeds so you won't get an IRS letter for that and correcting the cost basis should not create a problem with the IRS either. however, if it does, just write back and state what the facts are. include the notice and sign and date the responce.

Anonymous

only if you get an inquiry/notice from the IRS then respond with a letter where you explain why you did what you did - sign and date, include the supporting info from the 1099-B you may want to circle to, and finally mail the letter, support and notice back to the IRS. make sure you respond before the date in the notice and use a mailing method where you get proof of delivery. keep copies.