I have errors on Form 1099-B Worksheet Morgan Stanley Capital Asset Sales worksheet

[TAS467]

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Caution if using the 0.00 adjustment workaround 

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IRS defines Adjustment Code N as:

N = You received a Form 1099-B or 1099-S (or substitute statement) as a nominee for the actual owner of the property.

Report the transaction on Form 8949 as you would if you were the actual owner, but also enter any resulting gain as a negative adjustment (in parentheses) in column (g) or any resulting loss as a positive adjustment in column (g). As a result of this adjustment, the amount in column (h) should be zero. However, if you received capital gain distributions as a nominee, report them instead, as described under Capital Gain Distributions in the Instructions for Schedule D

[TAS467]

@RyanH5 any ideas??

[TAS467]

Similar issue reported here:

https://ttlc.intuit.com/community/taxes/discussion/1099-b-worksheet-incorrect-code-n-nominee/01/3197...

Morgan Stanley isn't open until Tuesday (Bank Holiday Monday). Plan to call them - it could be a software issue on their side downloading incorrect data. 

[furledd]

I looked at my download file preview from MS, and it included the Adjustment code N in the transactions, which is not right, as this is my account trades, not a nominee.

As others said you can put a zero in but if you still have an N in the sales file. And if you have a transaction with a wash sale, (showing NW) there is no workaround to get out out of an error situation in that case.

I think they need to adjust the ETrade by Morgan Stanley downloadable Sales data to remove the N from the adjustment Code field in the import file on these transactions.

[dbrown71467]

Same issue here 195 errors. I narrowed it down to the change-over to Morgan Stanley as the 1099-B before the change works great. My 1099 before the change did not have the code N. I imagine I will not get through to E-trade on Tuesday with all the issues. Hopefully an updated 1099-B will come out quickly or instructions.

[Scrappy2]

This worked for me also.

[TAS467]

Confirmed in the preview file as @furledd stated - Morgan Stanley is incorrectly sending the "N" Adjustment Code (screen shot below). All of my transactions have this incorrect adjustment code. 

 This is a Morgan Stanley issue to resolve. Let's hope MS didn't send this incorrect data to the IRS!!!

Sent MS a secured email reporting the error - hoping it gets actioned before Tuesday (Monday is a Fed Holiday). Chat is not available on the weekends. 

[iDas]

"Morgan Stanley Capital" destroyed Etrade after buying them out - I faced the same problems with their tax docs, and ultimately ended up re-doing all trades in a spreadsheet based on their trade confirms and entering them manually. Unrelated, MS Capital also butchered ETrade's great service and trade execution, and are stealing more on each trade with fake bid/asks. You may have seen that MS recently got fined by the SEC for disclosing client trades to certain preferred clients before hand, allowing them to frontrun. They're done.

[ash113]

Thanks. That works.

[dbrown71467]

Just read about that 250 million fine. They made 100 million from their illegal action so it should have been a 350 million fine.

[potatoes77]

Agreeing with others here... it looks like stock sales after Morgan Stanley updated account numbers (September-ish?)  were incorrectly marked by Morgan Stanley as note "N" - meaning for Nominee.  This "N" will appear on your form 8949 Part I, Line 1, column f.  While filling in a 0 in column g will remove the error in turbotax, I think the IRS will get confused.  So I would suggest waiting for MS to fix it, or enter your transactions manually if you need to - yecch, but at least your entries will be consistent with the printed 1099-B form.

[mayorlil]

I agree that I would NOT file the return with N still in there.

[Proft]

The root issue appears to be that "legacy" E*TRADE account import data comes in fine, but data from the "new" Morgan Stanley E*TRADE account import data (which would be the case for all legacy accounts converted to new Morgan Stanley accounts as of about September 2023) has this issue of the forced "N" adjustment code.

The TurboTax software developers simply have not accounted for this subtle change in export formats between legacy and new E*TRADE account types.

TurboTax support is a completely worthless disgrace, and refuses to open a bug report with their software development team after a 60 minute phone call demonstrating the issue via live screen share.  Unacceptable, and I will be attempting to return my copy of TurboTax for refund and moving to TaxAct or some other product.

[jonarmst_303]

At least you can get support from TurboTax (not that it sounded like it is worth anything.)  Since E*Trade got sold, their once stellar customer service is beyond worthless.  Good luck talking to someone.  Intuit really wouldn't open a bug on this?  There must be at least a dozen of us that have had the identical problem on at least two different threads now.

[DPN24]

Same here. Getting the Adjustment Amount error on many entries plus the N Code error on a tiny wash sale amount of $3.16!

Entering 0 seemed to remove the ERROR STATE for the Adjustment Amount issue but the N code keeps coming back.  

Glad we're all early enough to hopefully get a fix!