[Filter: PII] AGratteau's post body matched "r:[\w\d]{4}-[\w\d]{5}-[\w\d]{5}", board "202".

[AGratteau]

[Filter: PII] AGratteau's post body matched "r:[\w\d]{4}-[\w\d]{5}-[\w\d]{5}", board "202".

Post Subject: Re: ANSWER IS CORRECT FROM AN INCOME TAX STANDPOINT BUT STEP...

Post Body:

@TomYoung Well, something is just not adding up. I see what you're saying and I think "TurboTax has calculated a per share FMV based on the net proceeds" is a likely culprit because I don't even have a box to enter a FMV figure. So I deleted the entire section and started over. This is what I see (note, I'm using the online version of TT Self Employed).

On the Income & Expenses section, I chose: Investment Income (1099-B or broker statements), then, "Stocks, Mutual Funds, Bonds, Other." Here are the interview questions that come up:

• Did you sell stocks, mutual funds, bonds, or other investments in 2019? My answer: "Yes"
• Did or will you receive a 1099-B form or brokerage statement for these sales? My answer: "Yes"
• Let's get your tax info...This time, I skipped the auto import and clicked "I'll Type it in Myself"
• Which bank or brokerage sent you this form? I typed in ETrade + my account number
• Do these sales include any employee stock? (This includes ESPP, RSU, RS, NQSO, and ISO) My answer: "Yes"
• How many sales are on your 1099-B form? My answer: "More than a few (4+)"
• We strongly recommend entering your sales from your broker one at a time. I chose "continue" instead of I'll enter a summary instead
• Now we'll walk you through entering the info on your 1099-B:
  • What type of investment did you sell?   My answer: "Nonqualified stock options (NQSO)
  • What is the sales category? My answer: "Box A - Short term covered" (per my 1099B)
  • Box 1a - Description. My answer: "210 Shares Company Class A Stock" (per my 1099B)
  • Box 1b -The date this investment was acquired. My answer: "04/17/2019" (Per my 1099B)
  • Box 1c - Date sold or disposed. My answer: "04/17/2019" (Per my 1099B)
  • Box 1d - Proceeds. My answer: "$40,177.43" (Per my 1099B)
  • Box 1e - Cost or other basis. My answer "$36,138.90" (Per my 1099B)

From here, I have 2 options. If I just hit "Continue" the next screen says:

"Let us know if you'd like to make any changes to the cost basis" 

Because this sale included nonqualified stock options (NQSO), we recommend reviewing your cost basis to make sure it's reported correctly. We've got your back and can help you figure out the correct cost basis so that you don't pay more taxes than you should.

I need help figuring out my cost basis

I know my cost basis and need to make an adjustment

I don't want to make any changes to my cost basis right now

Alternately, there is a box I can check that says: "The cost basis is incorrect or missing on my 1099-B" If I check that box and then hit continue, the next screen says:

We noticed there's an issue with your cost basis...Let us know if you'd like to make any changes

Because this sale included nonqualified stock options (NQSO), we recommend reviewing your cost basis to make sure it's reported correctly. We've got your back and can help you figure out the correct cost basis so that you don't pay more taxes than you should.

I need help figuring out my cost basis

I know my cost basis and need to make an adjustment

I don't want to make any changes to my cost basis right now

These are essentially the same screens. If I select the middle option: "I know my cost basis and need to make an adjustment" it just gives me a field to enter the "actual cost basis". I don't think I know what the true cost basis is (or how to calculate it). I don't see that anywhere on my 1099B or on the individual trade confirmations. So, I chose the first option: "I need help figuring out my cost basis"

Here are those interview questions:

• Next, we'll help you figure out your cost basis. Since you’re unsure about your cost basis, we're going to walk you through figuring out your cost basis to make sure it's reported correctly.
  • Tell us about your NQSO sale. Who did the stock belong to? I chose the correct person listed
  • Which employer is this for? I chose: "It's for an employer that has an existing W-2 on this return," and then I selected that employer from the drop down box
  • Number of shares sold. My answer: 210
  • Was this a cashless exercise (also known as a same-day sale)? My answer: Yes
  • Next, we'll get some details about the NQSO shares you sold. To accurately report your NQSO sale, you'll have to enter info that you should have received in a statement from your brokerage. Let's get some purchase (exercise) info about this NQSO sale:
  • Date options were granted. My answer: "04/21/2017" (per the etrade exercise confirmation)
    
  • Exercise price (per share). My answer: "$191.42" (listed as the "Sale Price" on the etrade exercise confirmation)
  • Number of shares exercised. My answer: "210" (listed as "Shares Exercised" on the etrade exercise confirmation)
  • Exercise commissions or fees paid. My answer: "20.79" (listed as Commission/Fee on the etrade exercise confirmation)

The next screen is a review screen/summary of trades entered, titled "Review your purchase info for the shares you sold." I hit "Done"

Last 2 screens/questions are (1) Does the cost basis need to be adjusted as result of a stock split or reverse split? (I chose No) and (2) Does the cost basis need to be adjusted as result of reinvested dividends? (I again chose No)

At this point TT gives a summary that says: We've adjusted your cost basis for you to be $40,218.99.

The next screen says: Here are your E-Trade sales

Description	Date sold or disposed	Sales category	Proceeds	Cost basis	Adjustment	Gain/Loss
Company Class A 210 Shares	04/17/2019	Box A	$40,177.43	$36,138.90	-$4,080.09	-$41.56

If I stop there and head to the federal review, I already have the same line 18 error.  Box e shows $191.42, box g (which I did not enter anywhere) shows $191.3211

Is there some other "normal" way of entering stock sale info? I never see a button called: "I'll enter additional info on my own." Maybe I can avoid this if I can learn how to calculate the basis on my own and can just enter it on the "I know my cost basis and need to make an adjustment" screen. OR, is there something strange going on with TT and I should call a rep to see if they can help me figure out why I don't get the screen you're referencing?

Sorry to be taking up so much of your time on this. I really appreciate your answers/help!

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[MonicaM]

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