What to input for dates and cost basis: 1099-B Form proceeds received in 2023 for a 2018 sell

[cachu]

Hello,

I am trying to get more information around how best to file with 1099-B for 2023.  This is a use case for RSU's that were exercised years ago and a merger/acquisition happened in which I filed in previous tax years. 

Now, years later cash proceeds that were held in escrow were distributed to security holders and I am trying to figure out how to input this properly.

In TurboTax Premier desktop I am being asked for:

• Sales Selection --> I assume this would be 'long term basis not reported to irs - non covered)?
• Date investment was acquired --> ?  would this be 2023 as this is when Payment was received? 
• Cost or other basis --> ?

The only boxes that have values are

• 1c - Date sold or disposed --> 2018
• 1d - Proceeds --> $xxxx
• 5 - non covered security - checkmark in box

The wizard does attempt to help me calculate my cost basis , however given I already have 

[RobertB4444]

You're right about the sales selection.  You acquired the investment in 2018, though.  Your cost basis is what you paid back then.

@cachu 

[cachu]

Thanks @RobertB4444 !

Turbotax won't allow for 2018 as an input for 'acquisition date', would I input payment dates from 2023?  

To confirm, my cost basis would still be the amount I paid back then? 

For ex:

In 2016, I exercised/purchased 100 RSU's for $1/share --> $100

In 2018, merger/acquisition occurred at a value of $500; I recognize capital gains

In 2023, I receive $10 from escrow, I would still input the $100 as cost basis?  Re: Turbotax shows a 'negative' amount

[RobertB4444]

Yes, you paid $100 for it so it's a loss.

And you can use the 2023 date.  Since it's a loss the date isn't important.

@cachu 

[cachu]

Got it, @RobertB4444 so to summarize even though I previously was fully paid out and reflected the gain then , I would show a loss for the additional $10 now

-2016 Exercised/purchased 100 shares for $100

-2018 Acquisition led to payout of $500 for the 100 shares --> $400 gain 

-2023 Escrow settlement additional $10 --> $90 loss for tax year

[AmyC]

In 2018 you were paid $500 for your 100 shares purchased  at $100 for a $400 gain then you have used the basis in your shares already.

It looks like you just got $10 that would normally have been part of the 2018 sale. I agree with Robert that it seems like you should have a basis for this money. I just don't see one.

The money is from 2018 so I would use that for purchase date and you have no choice but 2023 for sales date. 

[cachu]

thanks @AmyC 

I was able to look back at my records and in 2018 I did in fact 'use' the full cost basis already so I'm unsure if inputting $0 would be correct or/how I would re-calculate a cost basis 

[DianeW777]

If you used up the full cost basis in a previous sale the cost basis for 2023 would be zero.  There is no recalculation of the cost basis already used to reduce a former gain.  You can use zero for cost basis or leave that field blank.

@cachu