On 1099-B form how do I determine which category of sale to input on Form 8949?

[marlonmack75]

This 1099-B is for some stocks I purchased as part of a retirement account more than 15 years ago.  The company was bought out and the stock was merged and I got a buyout.

Under box 1d it has  a total less than $100.  Box 1d has a note that states The amount listed under box 1d (proceeds) column are reported net of commissions and transfer taxes as required by federal tax regulations.

Additionally, under box 1d it has non-covered subtotals and grand totals with a note that states the quantity sold, subtotals and grand totals are provided as courtesy; these are not provided to the IRS.

Lastly, under box 5 it states non-covered transactions for which is not reported to IRS. you must determine short-term or long-term based on your records and report on Form 8949, Part I with Box B checked, or on From 8949, Part II, with Box E checked as appropriate.

Boxes 1b, 1e and 1g are blank.

I have no record from back then on how much I paid for them or anything.

Which category do I check for sale category? Do I need to send this 1099-b in with Form 8949 to the IRS?

Thanks

[TomYoung · Accepted solution]

"Do I need to send this 1099-b in with Form 8949 to the IRS?"

No, they have their own copies.

You can select either Box E or Box X, it makes no difference.

Just put in any date that's 15 years ago as the date acquired.  If you know your basis enter that in the basis box, if you don't just enter $0.  For that little amount of proceeds it's really not worth the effort to try and come up with a correct basis, unless you can somehow support a huge capital loss.

So you'll end up with a description of what was sold ("Company X Stock"), the date of sale, the proceeds, the date acquired and the cost basis.  That's all you need enter.  Select Box E or Box X and you're done.

Tom Young

[marlonmack75]

Tom, when I check box E for category of sale, TurboTax says I need to submit 1099-B with Form 8949 to the IRS in the mail. Is that correct?

[TomYoung]

No.  Delete that trade and start over.  

You told TurboTax that you'd enter your trades "in summary", i.e., you have hundreds and hundreds of trades so you'd just be entering "summary" proceeds and basis number and then submit your 1099-B with those hundreds and hundreds of trades that provides the detail that the IRS demands.

Tell TurboTax you'll enter your trades "one at a time."

[marlonmack75]

Thank you!