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posted Feb 17, 2025 7:20:13 AM

Turbotax 2024 error on 1099-B Undetermined Term Transactions for Noncovered Tax Lots

My 1099-B shows proceeds from a 2024 stock sale under the category "Undetermined Term Transactions for Noncovered Tax Lots".  On my 1099-B, the date acquired is listed as Various, and the Cost or other basis is listed as zero.  As required by the program, I have manually entered each individual acquisition of the shares identified under this category; in my case the shares were all restricted stock awards (or purchases made with vesting stock options that I subsequently exercised).  For each acquisition, my purchase price was entered as zero (since most of these were stock awards to me from my company as bonuses, there was no cost to me, though I was confused about whether zero was correct for a few in which I had vesting stock options, rather than actual stock).  In any event, after accounting for all of the shares, the summary information for this entry shows the proper cost basis and proceeds, but lists the gain as short term when these were all actually shares held for more than 1 year and so should be classified as long long term gains.

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1 Replies
Expert Alumni
Feb 17, 2025 8:16:36 AM

"Various" automatically defaults to short term as the option.  In addition "undetermined term" means TurboTax is playing better safe than sorry with your taxes so that you don't get dinged later.  

 

You either need to change "various" to a date more than a year ago or change "undetermined term" to "long term transactions for noncovered tax lots".

 

@afeister