I'm new to all of this community forum and I posted on a previous discussion but decided to post here too.
I've been reading the messages on how to correct the cost basis and was hoping someone (hoping for the same person who helped @TomYoung can help me. I am getting the same error message in TT that Tom was getting and I was on the phone with TT for 2 hours and they couldn't help me. Argh. I was using the guided interview but inputting it myself may be the way to go but I need to know how to correctly calculate the cost basis. Help please
I need help please.
I'm going to delete what I have entered and start over.
I'm going to Investment Income because I sold stock options.
The first question asked is "Did you sell stocks, mutual bonds, bonds or other investments in 2019." My answer "Yes".
Then it asks what type of investments did you sell? I clicked on Stocks, Bonds, Mutual Funds (options, index funds, ETFs).
The it wants to import my tax info but I click on "I'll type it in myself".
Next question is "Which bank or brokerage sent you a 1099-B for these sales?" My brokerage is Merrill, A Bank of America Company, and I entered my account number.
Next is "Do these sales include any employee stock, which includes ESPP, RSU, NQSO and ISO?"
I answered yes because mine are Cashless Sell of a Non-Qualified Stock Option.
Then it asks how many sales are on your 1099-B form. I clicked on "more than a few sales (4+) because there are 5 under Short Term Capital Gains and Losses - Covered Transactions and 1 under Long Term - Covered.
Then it recommends entering the sales one by one.
So my question to you, the community, is should I enter one by one or the sales total instead?
I had entered them before one by one and that's what I think I should do but want to make sure I'm doing it correctly and to ensure the best outcome for me.
As I wait for an answer to my question in my previous post, I'm going to continue on with my stock option sales.
This is how my 1099B looks (and I'll just put info for one of the sales):
1a. Description of Property = 33.0000 Sale
1b. Date Acquired = 04/03/2019
1c. Date Sold or Disposed - 04/03/2019
1d. Proceeds = 6,199.88
1e. Cost Basis - 3,131,37
1f. Accrued Market Discount = 0.00
1g. Wash Sale Loss Disallowed = 0.00
Gain or Loss = 3,068.51
So in TT, this is how I entered the information:
Sales Section = Short-term basis reported to IRS (covered)
Sales Info (Boxes 1a-1e):
What type of investment did you sell? I answered Nonqualified stock options (NQSO)
Box 1a = 33.0000
Box 1b - the date this investment was acquired = 04/03/2019
Box 1c - date sold or disposed = 04/03/2019
Box 1d - 6,199.88
Box 1e - 3,131.37
and then I checked the box "The cost basis is incorrect or missing on my 1099B"
I checked this box because the cost basis is incorrect (which is what I'm told to do).
under what type on 8949 are they listed under? they can be A,B,C,D,E, or F
A and D can be entered as totals. the others must be detailed
a & d are where sales price and cost basis are reported to IRS, if they're adjustments such as wash sales they must get treated like b or e types
b & e are where sales price is but cost basis isn't reported to IRS
c & F is where neither sales price not cost basis are reported to IRS.
So I'm going to enter each sale separately.
As I mentioned in my earlier posts, I was answering the question "Do these sales include any employee stock" as yes, because my sales included NQSO. But in another post that I was reading, the guy answered "No" and when he did this and entered the correct cost basis, he wasn't getting the "review/error" message from TT.
So I'm confused as to how I should answer this. Help