I need to choose Code X from Form 1099B. It only allows A-E. Also, I don't have a Cost basis for 1e... should I estimate based on my memory?

[KittyM]

@cynthia I updated my answer for the second half of your question.  I posted too soon.  🙂

[KittyM · Accepted solution]

Code X means that the brokerage house doesn't know the holding period for your asset and you have to choose it from the information in your records.  This happens most commonly on rolled-over accounts because the brokerage doesn't have the data from your previous broker.  

Here's how to correct your holding period.  After entering the sale info from your 1099-B - including your correct purchase date - click the blue button at the bottom, I'll enter additional information on my own.  

On the page Let's get the rest of the info from your [Name] 1099-B, scroll down to the topic Corrected holding period and choose L - Long term (more than one year), or S - Short term (less than one year) then Continue.

Be certain you keep the supporting documentation with your return to prove your purchase dates, as using a different holding period can trigger a letter from the IRS.

If you know the date you purchased a stock, you can look up the price online at a site such as yahoo finance.  If you don't know (or can't prove) the cost basis, the IRS considers it to be zero.

[justnow999]

Hello,

Do I need to change code x ?

Thank you

[JohnW152]

No, you don’t need to change it, you just need to input the information correctly into the TurboTax system.  

Code X, as suggested above, is used by a payer to report a transaction when they can’t determine whether you should check box B or box E on Form 8949m, because the holding period is unknown. 

So, what you need to do in TurboTax Online is:

1. If you’re on the Hi TurboTax Client, let's keep working on your taxes! screen, click the Pick up where you left off button
2. Click Federal in the left pane, if you’re not already there
3. Click Income & Expenses in the banner
4. Click the Show more dropdown to the right of Investments and Savings
5. Click Start to the right of Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B)
6. Scroll down to the Stocks, bonds, etc. (1099-B) transaction that represents the transaction with the X code, select the dropdown to the right, and select Edit for the transaction
7. Select the Edit (a pencil) icon to the right
8. On the Now, enter one sale on your XXXX 1099‑B page, scroll down to Sales section and click the dropdown
9. Select Unknown term basis not reported to IRS
10. Provide any other relevant information on the page and select Continue

See Applicable Checkbox on Form 8949 in the Instructions for Form 1099-B for more information.

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@justnow999