Box 5 means that your sale was for a non-covered security. In these cases, the broker is not required to provide you certain information. However, you have to acquire this information as it is needed to calculate the gain or loss and determine the classification of the gain or loss. You have to determine the date acquired from your own records or searching previous broker statements/supplemental information to find this information. You can't calculate the gain/loss or related tax without that information. 1e is the cost basis. If you leave this box blank, you will likely overpay tax as the gain is the amount of the proceeds minus the cost basis. Without a cost-basis, the gain will be overreported. Here are some options for determining the stock cost basis.
The trade confirmation or brokerage statement from when you purchased the stock will show the purchase date. If you no longer have the confirmation or statement, the brokerage firm that handled the purchase for you should be able to tell you the date.
If you have no record of the date, and the brokerage does not have a record of it, you will have to use an estimated date. Make your best guess of when you bought the stock. The exact date is not really important, as long as you correctly identify the length of time that you held the stock as short-term (one year or less) or long-term (more than one year). You can also enter "Various" as the purchase date, but again you have to correctly identify it as short-term or long-term.
How do I find a stock's cost basis?
Yes, you still need the details of date acquired and date sold (Box 1c).
Box 5 on Form 1099-B is checked if the proceeds are from a noncovered security.
This does not yet answer the question if the transaction is short term or long term. Form 8949 sorts the transactions six different ways depending on this information. Boxes A, B, and C are for short term, Boxes D,E, and F are for long term.
On the back of the 1099-B, it says that if box 5 is checked, then boxes 1b, 1e, 1g, and 2 may be blank.
On my form, boxes 1b, 1e, 1g and d are all blank. BUT turbo keeps wanting me to enter something into 1b and 1e and into 19b on the Form 1099-B Worksheet. There is no box 19b on my Form 1099B.
IS THIS A "BUG" IN TURBO-TAX? Again box 5 on my form is checked, and I checked in on the Worksheet. Turbo still finds "errors" and highlights boxes 1b, 1e, and 19b on the Worksheet.
Box 5 means that your sale was for a non-covered security. In these cases, the broker is not required to provide you certain information. However, you have to acquire this information as it is needed to calculate the gain or loss and determine the classification of the gain or loss. You have to determine the date acquired from your own records or searching previous broker statements/supplemental information to find this information. You can't calculate the gain/loss or related tax without that information. 1e is the cost basis. If you leave this box blank, you will likely overpay tax as the gain is the amount of the proceeds minus the cost basis. Without a cost-basis, the gain will be overreported. Here are some options for determining the stock cost basis.
The trade confirmation or brokerage statement from when you purchased the stock will show the purchase date. If you no longer have the confirmation or statement, the brokerage firm that handled the purchase for you should be able to tell you the date.
If you have no record of the date, and the brokerage does not have a record of it, you will have to use an estimated date. Make your best guess of when you bought the stock. The exact date is not really important, as long as you correctly identify the length of time that you held the stock as short-term (one year or less) or long-term (more than one year). You can also enter "Various" as the purchase date, but again you have to correctly identify it as short-term or long-term.
How do I find a stock's cost basis?