Capital asset sales worksheet help

[hfdad]

I sold some stock that I had for many years. It was held in E*TRADE and I imported the 1099B directly into my Turbo Tax Premier. When I do a smart review, I get errors saying adjustment amount must have a value when an adjustment code (other than C, M, or T is entered). Code N has been entered. What value do I put in the highlighted box? Do I even need to fill it in?

[thesteele4]

Same for me.  Please fix this Turbo Tax or E*Trade

[SeattleKew]

Same thing for me. Uploaded 1099 from eTrade. Capital Asset Sales Worksheet is adding an Adjustment Code "N" . It's nothing that I entered. I can't figure out how to override the "N", and I can't get past the Federal Review check without putting in a dollar amount for the adjustment.

[hfdad]

I did find out that N code stands for non covered securities. Maybe that code shouldn’t even be there?

[SeattleKew]

That's interesting. I've read something different... that the "N" stands for "nominee". Per IRS "instructions for Form 8949", you should enter "N" if you ... "you received a Form 1099-B or 1099-S (or substitute statement) as a nominee for the actual owner of the property". I don't really know what that means. I thought perhaps in my case, it was because the assets were actually owned by a trust, of which I'm the trustee. But I'm not really sure.
https://www.irs.gov/instructions/i8949#en_US_2022_publink1000286502

[pitreau]

Out of curiosity, are you getting this only for the transacations from 1 of the 2 Etrade 1099s?  Or both?  It seems to be happening only for 1 for me.

[SeattleKew]

It's happening only on one of the two 1099s.... the one from Q4, after the final transition to Morgan Stanley.

[hfdad]

I only imported my 1099B that had 2 stock sales. I just printed out my completed form 8949 and on (g) amount of adjustment it is filled in with zero. In 2 lines I have code NW and there is a number there. I have to assume if I put these same numbers in the worksheet then my errors will disappear.

Does that sound reasonable?

[SeattleKew]

Not really sure. As a test, I tried putting in $0 as the adjustment, and then re-ran the Federal Review/Smart Check process. The error no longer appeared, so the $0 trick seems to be a workaround that gets it through TurboTax. But, from an IRS perspective, I don't know if that is the correct thing to do.

The eTrade upload was only available as of today. So I'm going to put my return aside and wait a few weeks to see if either TT or eTrade do some kind of update.

[hfdad]

The worksheet does not go to the IRS, so as long as the number on column G is the same as what is being asked for on the worksheet we should be ok. I agree with you though and should wait a little while before filing.

[hfdad]

Finally figured a work around for this issue. If you have all N codes than you can just add zero to adjustment amount. I had NW on 2 sales, and it would not work and could not figure the work around for that, so I deleted the E*Trade import and manually entered short term gain and long-term gain from my 1099B statement. It was much simpler and when I ran the error check no errors came up. All numbers match up and you avoid that worksheet.

I think the problem is with E*Trade reporting the sales as I had no issues with Fidelity and imported their 1099B. 

[AnnetteB6]

The issue with 1099-B's incorrectly importing with adjustment code N has now been resolved.  

Please delete your imported 1099-B and update TurboTax if you are using a CD/downloaded version.  Then, re-import your data for the Form 1099-B.

If this doesn't resolve the issue, please let us know so that we can assist you further. 

@hfdad 

@thesteele4 

@SeattleKew 

@pitreau