In 2021, I had RSU stocks vest and immediately sold.
I received my Form 1099-B; however, it notes the cost or other basis as Unknown. I just want to verify I am determining the cost basis properly for tax reporting.
- The sale and proceeds are listed on my W-2 as income.
- On the 1099-B it shows the proceeds - as an example I will say $20,200.
- I went to my paystub when the stocks were sold and see the amount as $22,200. The extra $2,000 is the commission for completing the sale.
On turbotax , I listed the total proceeds as $20,200 and the total cost basis as $22,200 thus my short-term sales with cost basis NOT reported to the IRS is negative (-$2,000).
I checked Box B - short term noncovered
Is this the proper way to report?
Any help is greatly appreciated!
Yes, for the most part. The only change I would suggest is leaving Box 1e Cost or other basis blank and then clicking the box beneath it that says The cost basis is incorrect or missing on my 1099-B. The next screen will allow you to enter your cost basis, which you correctly said would be $22,200 in your example.
Raif,
Thank you for the prompt response.
The step-by-step process doesn't allow me to leave it blank. Is there a certain form you are referring too?
If you could direct me it would be appreciated!
My instructions incorrectly assumed you were using TurboTax Online. To enter this in TurboTax Desktop:
Those instructions should work on TurboTax Premier Desktop. Let me know if you run into any problems.
Thank you I was able to follow the process and it appears correct.
Under turbo tax premier. it shows the following:
Shows gross proceeds of $20k and a loss of $900
(loss is the price of the commissions charged when sold)
As a result of the above it now shows a capital loss carryover of roughly $288.
Does that sound accurate?
Yes, it sounds like the transaction was entered correctly.
As for the capital loss carryover, that would depend on your other investments. You can only show a maximum capital loss of $3,000 in a year to offset your other income. The remainder is carried over to future years until it can be used.
Your $288 capital loss carryover will carry to 2022 when TurboTax imports your data from this year.