can't figure out 1099-B "Sale Category" value for Check Box "X"

[Quagmire]

hello. I am amending my 2018 taxes via turbo tax software and cannot figure out what to select in the Sale Category dropdown field considering the data I see in my 1099-B. here are the values:

• 1a. [stock's company name]
• 1c. [some date in 2018]
• 1d. [the $ value]
• 2.  Ordinary - No (short-term and long-term gain or loss are both blank)
• 3. No
• 5. Yes
• 6. Gross Proceeds
• 7. No
• 12. No
• FATCA filing requirement - No
• Applicable check box on Form 8949 - X

all other fields are blank!

the form also has a table containing most of the info from above, and the title for that table is the following (word-for-word):

Transactions for which basis is not reported to the IRS and for which Short or Long Term determination is unknown (to broker).

based on the facts that 2018 was the year when this transaction took place and was apparently not reported to the IRS by the broker, would I be correct to assume the value in Sale Category dropdown field should be Box C - Short term not reported ? or is it something else?

thank you!

[rjs]

"Not reported" for box C means that the sale was not reported on a 1099-B. But you do have a 1099-B, so you would not select box C. You have to select either Box B short-term noncovered or Box E long-term noncovered, depending on how long you owned the stock before you sold it. If you owned it for one year or less it's short-term. If you owned it for more than one year it's long-term. If you received the stock as a gift, you include the length of time that it was owned by the person who gave it to you. If you inherited the stock, it's considered long-term no matter how long you or the decedent actually owned it.

[Quagmire]

thank you, rjs for making it so clear! while I do recall receiving a handful of free shares as part of profit sharing, funny thing is I do not recall selling any of them. so I dug a bit more and uncovered that this transaction was classified as "sold to cover". I am not 100% sure what that means, but it appears as though the company I work for sold some of the shares to cover taxes or something along those lines, and that transaction has resulted in the 1099-B I received. do you happen to know what it means, and more importantly how does that affect my taxes? do I still need to report it in the fashion I described in my initial question, or is there a different approach to reporting a "sell to cover" scenario? thank you for your time!