Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Apr 3, 2018 12:01:59 PM

UNDETERMINED TERM TRANSACTIONS FOR NONCOVERED TAX LOTS

I have a question concerning a 1099B entry on TurboTax. The entry in question falls under the heading “UNDETERMINED TERM TRANSACTIONS FOR NONCOVERED TAX LOTS”, and concerns some Banco Santander ADRs that I hold. From the import of TD Ameritrade tax information, TT provides the following entries:

Box 1a Description: 05964H105 BANCO SANTANDER SA ADR SPONSORED

Box 1c Date sold: 07/20/2017

Box 1b Date acquired: blank

Box 1d Sale proceeds: 225.57

Box 1e Cost of basis: blank

Box 2 Type of gain or loss: blank

Box X – unknown holding period

In addition, the 1099B from TD Ameritrade provides a Quantity for this transaction of 0.000. Examining my TD Ameritrade statement for July, 2017, there exists no account activity that corresponds to this transaction. Now Boxes 1b and 2 can be faked by assuming that the transaction corresponds to a long-term capital gain (I have held the ADRs for some years). However, I haven’t a clue as to what to enter for Box 1e, the cost basis. Does anyone have any suggerstions?

0 3 4042
3 Replies
Level 7
Apr 4, 2018 4:04:57 AM

When did you acquire them, and what did you pay for them? If they were in exchange for some other stock - i.e. Santander acquired another bank - you need to go back further to find what you originally paid to acquire this asset. (Or what you were already taxed on.)

New Member
Apr 5, 2018 10:14:45 AM

It appears that this 1099B entry is related to the acquisition of  Banco Popular by Banco Santander in July/August 2017. The acquisition was an all stock purchase with new stock being issued by Banco Santander through a tender offer. The tender for new stock closed on 07/20/2017; on 08/03/2017 my TD Ameritrade account is credited with a "Qualified Dividend" of 248.63 which, after subtracting for an ADR fee of 23.06, comes to 225.57. I did not participate in the tender offer, so I am assuming that this non-regular dividend had something to do with adjusting stock values to account for the tender offering. I am inclined now to treat this as a return on capital. What do you think?

Level 7
Apr 5, 2018 4:07:29 PM

I'm not so certain after browsing this:

https://www.santander.com/csgs/Satellite/CFWCSancomQP01/es_ES/pdf/20170705-Prospectus_Supplement.pdf (start at bottom of page S-46).

It may be capital gain, but I'm not that familiar with the transaction and may be missing something in the document.