Form 8949 Column f Code N

[Gruss]

I have some "cash to boot" sales (merger with cash consideration) on a 1099-B. Some of the lots have a $0 basis and some have an adjusted basis. I imported the 1099-B from E*Trade.

I am not sure why, but TT is entering code N into column (f) on Form 8949 (for those with a $0 basis) and BN for those with an adjustment. Why is this?

According to the 8949 instructions, N means "You received a Form 1099-B or 1099-S (or substitute statement) as a nominee for the actual owner of the property" and says

"Report the transaction on Form 8949 as you would if you were the actual owner, but also enter any resulting gain as a negative adjustment (in parentheses) in column (g) or any resulting loss as a positive adjustment in column (g). As a result of this adjustment, the amount in column (h) should be zero."

In this case there is real gain and (h) should NOT be zero.

[Gruss]

Looks like a problem with the import; when I enter the sales manually (instead of via the import), I get the correct codes (blank for $0 basis and B for adjusted).

[RachelW33]

Yes, you are correct, some customers are having an issue with 1099-B's incorrectly importing with adjustment code N instead of adjustment code W.   Entering the information manually like you did is definitely a way around the issue when there aren't a lot of transactions.  @Gruss 

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[Gruss]

Thanks, but bear in mind these weren’t wash sales, but they still incorrectly were coded with N.

So it could be the same root cause, or something else.