How do you file proceeds from "Noncovered Securities with Undetermined Holding Period" portion of the 1099-B form? I own a Bitcoin ETF called IBIT

The exchange or financial institution does not have the purchase date and cannot report a holding period, either long-term or short-term.  Do you have personal sales records or sales tickets that can determine the purchase date?  

 

If so, in TurboTax Premium Online, report the IRS form 1099-B transaction as follows:

 

1. Down the left side of the screen, click Federal.
2. Down the left side of the screen, click Wages & Income.
3. Click the down arrow to the right of Investments and Savings.
4. Click to the right of Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B).
5. Click Add investments.
6. On the Let's import your tax info screen, select Enter a different way.
7. On the OK, let's start with one investment type screen, select Stocks, Bonds, Mutual Funds, then Continue.
8. At the screen Which bank or brokerage, enter the information.  Click Continue.
9. Do these sales include any employee stock, enter No.
10. Do you have more than three sales, enter No.
11. Do these sales include any other types of investments, enter No.
12. Did you buy every investment listed, enter Yes.  Continue.
13. On the screen Now, choose how to enter your sales, select One by One.  Select Continue.
14. At the screen Look for your sales on your 1099-B, select Continue.
15. At the screen Now, enter sale on your IBIT, enter information.  Under Sales Section Title, you will choose a noncovered option, either LT or ST.  Change Type of investment to Cryptocurrency.

Retain any sales information that you collect with your tax return papers should a tax authority have a question about the transaction at a later time.

Thanks James!  The strange thing is that I haven't Sold anything.  I bought shares in the Bitcoin ETF called IBIT, and now show 8 small (less than .10 cents) events on my 1099-B and the TurboTax application is asking for purchase dates to rectify.  I have 11 shares, bought in three transactions, and now 8 "proceeds" from Sales I never made.  Is it an error with etrade?  Seems like a trivial issue for $0.34 cents...Thanks again!

Agreed.  Very strange.  

 

Rounds to less than a dollar.  Not sure that $.34 is necessary to post an entry.

 

IRS Publication 17, page 14 states:

 

Rounding off dollars

 

You can round off cents to whole dollars on your return and schedules. If you do round to whole dollars, you must round all amounts.

 

Make sure to retain paperwork should a tax authority contact you at a later time.