tst Posted April 13, 2015 Report Share Posted April 13, 2015 I would appreciate anyone's help on code X on the 1099b it says that on Form 8949 and I should check code x. It's labeled box 5 noncovered securities It appears this client sold shares of stock to cover the taxes on options granted can anyone tell me how I should handle this is it short-term long-term gain and zero cost basis Quote Link to comment Share on other sites More sharing options...
tst Posted April 13, 2015 Author Report Share Posted April 13, 2015 The 1099b says Labor code X on 8459 13,000 and proceeds no cost basis no acquired date. I know it was sales of shares to cover taxes for options granted Any help? Quote Link to comment Share on other sites More sharing options...
tst Posted April 13, 2015 Author Report Share Posted April 13, 2015 Meant it says on 1099 to label code x on 8949 Quote Link to comment Share on other sites More sharing options...
tst Posted April 14, 2015 Author Report Share Posted April 14, 2015 Anyone know how to tax a noncovered security that sold shares to pay taxes for options granted? 1099 b shows no basis but not sure there would be a basis?? It says to code X on 8949 I've researched and can't find anything but I know its for shares he sold to pay taxes on options granted . Quote Link to comment Share on other sites More sharing options...
SFA Posted April 14, 2015 Report Share Posted April 14, 2015 Ask your client to bring in the paperwork that supports the share basis on the shares sold. He may have a paystub or company docs that map it all out for you. This is like Swiss cheese. Big holes in the doc trail. Push for more and you will get it. Quote Link to comment Share on other sites More sharing options...
cred65 Posted April 14, 2015 Report Share Posted April 14, 2015 Sometimes company issue Form 3921 with details. What type of option? ISO, NQO? Quote Link to comment Share on other sites More sharing options...
tst Posted April 14, 2015 Author Report Share Posted April 14, 2015 I understand. Appreciate it. He passed away Friday. Wife wants me to file. Long story. Think I will put zero basis. Just trying to see if someone very familiar with selling stock to pay taxes in "other options granted" and code X. ive never encountered code x. Ever. I will likely be conservative and amend as I get more info. Thanks all. Just a bit frantic. It is NON QUALIFIED. I was trying to see if code X was familiar to anyone. Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted April 14, 2015 Report Share Posted April 14, 2015 I've been seeing more and more code X. To me it's just a code F. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted April 14, 2015 Report Share Posted April 14, 2015 I've also seen X in a column under a heading like "Covered," So, in that case, X is not the code but just the check mark that the stock is Covered or whatever is in the heading. Quote Link to comment Share on other sites More sharing options...
jklcpa Posted April 14, 2015 Report Share Posted April 14, 2015 Agree with Lion. We have to read what those transactions are to determin how to report them appropriately. The latest one I had with code "X" were noncovered "other transactions" that included the cash in lieu payments for fractional shares and the sale of a PTP. Quote Link to comment Share on other sites More sharing options...
tst Posted April 14, 2015 Author Report Share Posted April 14, 2015 Thank you all. I finally Found the basis and it was box 5 non covered. I think the code X made me think this was a transaction that may not be reportable different etc. But it really is noncovered basis not reported to IRS. I AGREE that the X may not be a "code" but my 1099b says "check code x on 8949". Others say "check code A, D, B E. Ones we all know. I wasn't familiar with X. Still a bit different the way it's labeled. But I found Basis and I'm coding it long term Basis not reported to IRS. AS no code x. Thanks all. 1 Quote Link to comment Share on other sites More sharing options...
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