Charles Schwab: Box E: Long term sales with cost basis NOT reported to the IRS

[johnsantaclara1]

I request your advice:: I imported my Charles Schwab docs to TurboTax. I sold stocks last year. Turbo Tax screen "Here's a summary of sales from this account" says below.

Box A: Short term sales with cost basis reported to the IRS

Box D :  Long term sales with cost basis reported to the IRS

Box E: Long term sales with cost basis NOT reported to the IRS

Please help me understand the reason why Box E long term sales were not reported to the IRS and the steps in Turbo Tax on how to fix it. Thank you!

[Mike9241]

e  - it's only the cost basis not reported to the IRS the sale proceeds were

there was a change in the laws for broker's reporting so the broker was not required to report the cost basis for securities bought before a certain date.  however, you can use the cost basis that Schwab shows.

[Critter-3]

The SALES were reported by the broker however the COST BASIS was not ... ask them why they did not report the basis.  If there is no basis on the 1099-B then you must provide it from your records.  

[Bsch4477]

The sale wasn’t reported to the IRS because the broker didn’t know or wasn’t sure of the cost basis. The effect on you, aside from supplying cost basis if not given, is that you have to report each such transaction separately rather than report the total in that category. Otherwise you have to send in a separate form or a copy of your 2099-B. 

[Critter-3]

The SALE WAS REPORTED but the COST BASIS WAS NOT.   You must report ALL the sales on the 1099-B and provide any missing cost basis amounts ... if you don't enter in an amount then the cost basis is considered ZERO by the IRS. 

[johnsantaclara1]

Mike9241 and all, please advise the steps in Turbo Tax on how to fix what is not reported. Thank you.

* Box E: Long term sales with cost basis NOT reported to the IRS

[Bsch4477]

John, just report the transaction like any other stock sale, and enter what you paid for the stock if that field is blank. 

[johnsantaclara1]

Thank you all! I understand the reason now. I see a page in the tax form with title: "LONG-TERM TRANSACTIONS FOR WHICH BASIS IS AVAILABLE BUT NOT REPORTED TO THE IRS ". In this form the cost basis has been listed for each of the shares I sold last year. 

So: if the cost basis amount listed in this page matches the cost basis in Turbo Tax (upon editing Box E in the screen "Tell us about your CHARLES SCWHAB & CO., INC. 1099-B"), or the cost basis already imported from my tax forms by Turbo Tax is > 0, then I don't have to change anything in Turbo Tax for those stocks, right?

Thanks again.

[fanfare]

Use your own records to supply the cost basis.

If you agree with the numbers already on there, there is nothing to do.

[KirkShadrick]

Have "Long-Term Transactions for which basis is available but NOT reported to the IRS-Report on Form 8949, PartII, with BOX E checked" but Turbo Tax Premier is only offering me BOX C or BOX F not BOX E?

[FangxiaL]

I don't see any issue with selecting Box E using TurboTax download or any issue with selecting using TurboTax Online version. Did I misunderstand your question? Please clarify if I did.

[KirkShadrick]

thank you.!I had wiggled through the wires ending up at the wrong page- figured it out and wiggled again to the page that allowed me to choose Box E.

[EbonyA]

Ok...happy to hear that - thanks for the update @KirkShadrick.