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confusedmeghan
Returning Member

Turbotax flagging 1099 for being incorrect - Special Escrow and Expense Fund Release

A company I worked for and had stock in sold back in 2021. They held some payment back at the time, the reason given was that it "was an additional escrow which relates to a sales tax matter." So I got that payment back in October 2023, they sent me a 1099B and in the field "1c Date sold or disposed" it says the date of the original sale, 09/27/2021. But this keeps getting flagged by TurboTax which says this entry must be in 2023. I'm not sure what to do, enter something different than what the the 1099 actually says?

 

Also, it does not include a cost basis, so I'm at a loss as to how to figure that out. I know how many shares I had, what I originally paid for them, and what the payout was in 2021. But not sure what the cost basis of this small escrow would be?

 

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2 Replies
SusanY1
Expert Alumni

Turbotax flagging 1099 for being incorrect - Special Escrow and Expense Fund Release

In your case, yes, I would enter an October 2023 date as the date of the sale and use the 2021 date as the "purchase" date (even though it doesn't sound like there was an actual purchase.  

it sounds like the cost basis is 0 for this additional payment. 

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confusedmeghan
Returning Member

Turbotax flagging 1099 for being incorrect - Special Escrow and Expense Fund Release

Thank you! I did pay for them, but over a decade ago when I left the job at the heavily discounted employee rate. Then in 2021 they ended up getting bought out. 

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