IRS Tax forms 1099B and 8949

[Bluejester007]

Hello, 

I'm trying to file online, not through the mail and have the following questions regarding IRS Forms 1099B and 8949:

I recently sold stock and on TurboTax online, under the review section, it asks me to verify the cost basis using the imported form 8949. I do not see any amounts there, however on the copy of my 1099B, under short-term and long-term non-covered securities, it shows two different amounts for the cost basis.

Which term cost basis amount do I use under my 1099B, or do I add them up and then enter the total in TurboTax? It must be a positive amount, meaning that it cannot be zero. Any assistance is greatly appreciated. I'm a first time stock seller.

[WendyN2]

If this is only two transactions (which is how I am reading your question to be), and there are two different cost basis amounts, I would imagine that the physical 1099-B would clearly state which cost basis belongs to which transaction, as well as properly categorize it as either S/T or L/T. If this is one transaction and you have two "cost" figures, then one of them should be stated as "adjusted basis" - and this is the one that you would use versus the one that should say "original cost basis". It truly all depends on these two scenarios I've laid out for you and which one applies to you. An adjusted basis it typically a "stepped up" amount to the original cost. An example, if someone inherits stock then sells it, they would not use the original cost of the stock as this most likely would cause a HUGE gain for them and thus trigger tax due. They would take the FMV of the stock at the date of inheritance, which in stock sales terms is called the "adjusted basis". I hope this helps.

[Bluejester007]

Wendy,

Thank you for the reply. I do not currently have the physical copies of the 1099B forms, the forms I got from my stock broker do not clearly show which ones to use in the case of the issue within the TurboTax software/app (iPhone); Even the software doesn't specify which value to use, as the imported 8949 form has the cost basis field blank and it is very difficult to read when using the import feature. I have attached a screenshot of what TurboTax asks.

Both short-term and long-term on the digital copy of the 1099B show "cost" basis. However they are two separate sales with two separate amounts. This is where I'm confused as to what amount do I use for TurboTax?

[WendyN2]

No, you still should not combine them as two separate sales are two separate transactions and all information for each one should be entered individually (first entry - all information for the first transaction - if only two separate purchase dates and cost basis amounts, then it is quite possible that the brokerage statement is condensing and therefore the same sales price, share quantity, and sale date are the same for both transactions. You still need to enter them as two separate transactions, however. Be sure to properly classify them as either S/T or L/T as they carry different tax "consequences".