Hi,
I am trying to finish my tax return and file it by using Turbo tax. At the end of tax, under section REVIEW is showing me the form 1099-B and the Capital Assets Sales worksheet is highlighting one of my stocks in RED and is asking me to provide the Proceeds field and Cost Basis field.
The reason why Turbo Tax does not know how to understand that stock is: This stock is called "Series A Preferred Stock".
So the questions is: How to file this "Series A Preferred stock"?
It doesn't matter what the description of the investment is, you need to enter the sales proceeds and cost basis to properly enter the sale on your tax return. When it says "Series A preferred stock" that is just the description of what was sold. You need to enter how much it was sold for and the cost when acquired.
part of the issue may go back to last year when the PFD A was issued. it may have represented compensation that needed to be reported for tax purposes. no way for us to know. the amount of compensation, if any, would be te basis, if no compensation then it would seem the tax basis is 0