Hello. As the title suggests, I have 2 problems with my eTrade 1099-B. I don't think it's a "bug" on eTrade or TT side. More likely an "uncommon situation" that I hope somebody here had in the past and could advise. I tried to search TT Community, there are multiple topics alternating between "edit 1099-B" and "do not edit 1099-B".
Problem 1: 1099-B has several entries under "Noncovered Securities with Undetermined Holding Period" - all of them missing cost basis and purchase date. TT imported this data and then suggested I enter cost basis and purchase date manually, which I did referring to individual transactions in eTrade. I suppose I "edited an imported 1099-B". Is this the correct way to do it?
Problem 2: I had "written off" several positions with the assistance of eTrade agent. Those were penny stocks with price hovering near zero (i.e. 0.0001) and practically no activity (i.e. CUSIP:49460M101 "KINERJAPAY CORP"). All of them are registered as "sell" transactions in eTrade, with purchase date, cost basis, $0.00 in proceeds and -$XXX in gains. All of them are missing on 1099-B. How do I report them as capital losses? I see I can add a sale manually and select a sales section title "Long term did not receive 1099-B". Do I add those sales to the existing eTrade 1099-B or do I create a separate 1099-B (with the same account number)? Some people here suggested to create a separate 1099-B and make sure to add "worthless" to the title and trade descriptions. Do I need to provide additional documentation e.g. eTrade monthly statement featuring these sales?
Worthless is a way to explain why you have a proceeds of zero.
If the detail is on your broker 1099-B, no other documentation should be attached.
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For non-covered securities ( BOX B or E) showing zero (wrong) basis, enter the correct basis yourself.
Use code "B" and put -0- in col (g).
For Box A or D, leave basis as reported, use Code "B" and put an adjustment in col(g).
If the basis is not reported to IRS, there's nothing to adjust.