UNKNOWN TERM - CODE (X) REPORT ON FORM 8949, PART I OR PART II

i have a $21.- reported as "unknown term"

where do i enter this?

thank you!

306

Expert Alumni

Feb 25, 2025 1:14:09 PM

It depends. Enter it as long or short term depending on your holding period using the instructions below.

If box 2 is blank and code X is in the "Applicable checkbox on Form 8949" box near the top of Form 1099-B, your broker doesn't know whether your gain (or loss) is short term or long term. Use your own records to determine whether your gain (or loss) is short term or long term.
Where do I report Form l099-B? You can manually enter it or find your transaction to select the correct holding period.
- Long term is a holding period of more than one year (one year plus one day) and receives capital gain tax treatment (0%, 10%, 15%, 20% depending on your regular rate of tax)
- Short term is a holding period of one year or less and receives ordinary gain tax treatment (your regular rate)