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ETextor
New Member

1099-B Not Allowing Zero Cost Basis

We have a 1099-B for the sale of a Restricted Stock Award with a blank cost basis.  This was a stock award from my wife's employer.  The form help says a zero can be entered.  But when we enter a zero, the next page gives three options:  "I found my cost basis", "I need help with my cost basis", and "I don't want to enter my cost basis (not recommended)".

 

If I choose the last option the summary shows it needs review.  Why won't it accept the zero amount?

 

 

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1 Reply
ThomasM125
Employee Tax Expert

1099-B Not Allowing Zero Cost Basis

When you entered the Form 1099-B you must have checked the box at the bottom that says your cost basis is wrong or missing. If you want to enter $0 for the cost basis as it is reported on the Form 1099-B, you should do so on that entry screen but not check that box. You can try unchecking it and that may resolve your issue, if not you will have to delete and re-enter the form.

 

Also, with a restricted stock unit (RSU), you typically have ordinary income associated with it that is reported on your W-2 form. You may see a note on that in box 14 of the form. If so, that amount is considered cost basis so you may need to factor it in to the cost basis of the shares you sold. That is why you have the option of saying the cost basis on the 1099-B is missing or wrong. If you know how many shares you received during the year, you can divide the ordinary income reflected on the W-2 form by the number of shares to get the discount per share. You can multiply that by the number of shares sold as reported on your 1099-B form to get the cost basis you need to add to what you may have paid for the shares you sold. Typically, you don't pay anything for RSU's so the discount becomes that adjusted cost basis you need to enter with the 1099-B entry.

 

 

 

 

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