Noncovered securities- entering cost basis as 0- how to determine if it is long term or short term

[hellotax1111]

Hello,

I have some questions about noncovered securities on the 1099B. 

1) Since I do not want to manually calculate the noncovered security cost basis amount, I am planning to put 0 for cost basis. How would I determine if I should put "long term non-covered" or "short term noncovered?"

If all of the stocks were purchased more than a year before it was sold can I just put "long term noncovered?" 

If I enter "long term noncovered" accidentally and should have put "short term noncovered" what are the risks and is there a greater risk of getting a audited as well?

2) Is the tax based on the proceeds of the sale? The summary for all the non covered securities lists proceeds as $50. If I put long term noncovered, then the amount I will be taxed will be the tax rate times $50 and that is it correct? I will not have to multiply by the number of shares etc.?

3) Does Turbotax Premier help with calculating cost basis? The only article I found was from 2019 so it is not recent. 

ttlc.intuit.com/community/state-taxes/discussion/how-do-i-record-non-covered-securities-on-my-1099b/...

[ColeenD3]

1) Yes, it is okay to use zero. If you don't know the basis, you must use zero.

2) Yes, it is based on the sales price. 1099-B is already giving you that when they tell you the proceeds. You don't have to calculate anything,

3) No, as stated, TurboTax no longer does that. You could look back at brokers' statements as indicated. Again, if you have no information whatsoever, use zero.

[SteamTrain]

Noncovered shares are very unlikely to be short term, since those would only be for shares held less than 1 year, and brokerages have been required to provide basis as being "covered" for many years now.

(But, I can't know all possible strange situations)

1)  IF you held the shares for over one year, they are long-term.

2) IF you held the shares less than one year, BUT, they were inherited.....then they are automatically considered long-term, and their basis is their value on date of death of the original owner.

[hellotax1111]

Thanks so much Coleen and SteamTrain for your quick and helpful replies! Appreciate it.