I recently sold stock I held in a private company. They do not issue 1099-Bs. In TurboTax Premier Windows desktop edition, I was able to enter the capital loss via the 'Step by Step' process. However, upon reviewing the "1099-B Wks (No Financial Institution)" form, I noticed a checkmark for "Yes" in the "Taxpayer must mail in a statement with more details" at the bottom of the form.
The only cost basis evidence I have is a spreadsheet showing historical share prices. I also took a picture of the stock certificate before I turned it in to the company when I sold the stock. The image of the certificate has the number of shares and date acquired but no price (cost basis). I calculated the capital loss based on the date of the stock certificate and the price of the stock on the date sold based on the spreadsheet of price history.
Questions:
1. What details do I need to 'mail' in to the IRS and what address do I mail it to?
3. Is the spreadsheet of historical prices and the stock certificate image sufficient proof for the IRS?
Many thanks!
On Form 8949 is there an adjustment code M in column (f)? If so, that's why it's saying that you have to mail in a statement. The code M means that you entered a summary instead of entering each sale individually. Did you have more than one sale? If you enter one sale at a time it won't use adjustment code M and it won't tell you to mail in a statement.
...and let me add to my message above that TurboTax did not signal or remind me to mail in the supporting documents. It was by chance that I noticed that requirement in the worksheet in 'forms' view.
On Form 8949 is there an adjustment code M in column (f)? If so, that's why it's saying that you have to mail in a statement. The code M means that you entered a summary instead of entering each sale individually. Did you have more than one sale? If you enter one sale at a time it won't use adjustment code M and it won't tell you to mail in a statement.
you need to send in no supporting documents. if the IRS wants them you'll get a letter. each sale of stock purchased at different times needs to be entered separately. the 8949 box is C for short-term shares - or F for long-term shares. the box code tells the IRS that neither the proceeds nor the cost basis was reported to them by the entity handling the transactions.
You're right! I chose the "I'll enter one sale at a time" option for the one and only sale and everything looks good now. Many thanks!