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dd3p3w
New Member

The Sales section title for a 1099-B does not have "noncovered" reported to IRS. Which Sales section should I select? This was inherited stock that I sold.

Other aspects of the sale were listed as Long-term reported to IRS and short-term reported to the IRS, but the line item with the largest amount did to have a cost basis listed.
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3 Replies
FangxiaL
Expert Alumni

The Sales section title for a 1099-B does not have "noncovered" reported to IRS. Which Sales section should I select? This was inherited stock that I sold.

Inherited stock is always considered long-term. You also need to find out the price of the stock on the date of death of the person you inherited the stock from so that you can step up the cost basis. 

 

For more information, see this help article: What is the cost basis of inherited stock?

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The Sales section title for a 1099-B does not have "noncovered" reported to IRS. Which Sales section should I select? This was inherited stock that I sold.

this may, can't be sure, cause a problem. if it's in the covered section that means the broker is reporting a $0 cost basis to the IRS and when they get your return that's what it may expect to see.  it should have been in the non-covered section

you may want to request that the broker correct the form to report it as noncovered.

 

the other option is to use adjustment code B which tells the IRS that the basis reported was wrong

for acquisition date type in inherited

 

 

 

dmertz
Level 15

The Sales section title for a 1099-B does not have "noncovered" reported to IRS. Which Sales section should I select? This was inherited stock that I sold.

The TurboTax Help page on determining the cost basis of inherited stock is incomplete.  The date-of-death per-share value is determined by averaging the high and the low prices of a share on that day.

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