Janitor Bob Posted April 3, 2014 Report Share Posted April 3, 2014 I am confused by a client's 1099-B....4 stock sales. 1099-B classifies all 4 as Long-Term with basis not reported (8949 Part II, Box E). The 1099-B does list the cost/basis...gains and losses are very small, so pretty simple....BUT all 4 transactions have Acquisition date of 04/08/13 and transaction date of 04/26/1......How are these Long-Term? I am suspicious that the Acquisition date for all 4 "should" really be stated as "Various"...Not 04/08/13...because I have done this client's taxes for a few years and she has received dividends on these stocks in prior years....So I know she has had them prior to 2012......and since disposition method is stated as "First In First Out" on the 1099-B, she must have had all 4 longer than a year. Should I have the client contact the broker or just assume Acquisition is "Various" and classify the small gains and losses as "Long Term" and be done with it? or do I enter the acquisition dates as stated on the 1099-B (04/03/13) and Force them to be Long-Term? That seems counter-intuitive. Her refund is the same no matter how I report it because client has enough capital loss carryover to wipe out the small gain....but I just want to state the transactions properly on her return. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted April 3, 2014 Report Share Posted April 3, 2014 Yes, just assume Acquisition is "Various" and classify the small gains and losses as "Long Term" and be done with it. 2 Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted April 3, 2014 Report Share Posted April 3, 2014 At the firm, we have had 1099-Bs from several brokers with such errors. Sloppy programming and input of the program that produces the 1099-B. I think the producers of healthcare.gov went to work for investment companies... 4 Quote Link to comment Share on other sites More sharing options...
Lion EA Posted April 3, 2014 Report Share Posted April 3, 2014 The shares might have been inherited on that date or transferred into the broker from another on that date or transferred to the brokerages new computer database on that date or.... Yes, I'd just use the code for long term and move on. I too have seen some sloppy stuff when the info is not reported to the IRS. 3 Quote Link to comment Share on other sites More sharing options...
KINGCHUCK1971 Posted April 3, 2014 Report Share Posted April 3, 2014 I agree with going with various and long term. Trust me you're going to need your time and your energy to close out the season. 2 Quote Link to comment Share on other sites More sharing options...
Kea Posted April 3, 2014 Report Share Posted April 3, 2014 I had one earlier and it turned out LT was correct because it was a result of previous wash sale. Various will work great! Quote Link to comment Share on other sites More sharing options...
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