Cost basis is not mentioned in 1099B and Noncovered security is checked

Forum|Forum|1 year ago
February 4, 2025
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My brokers sent me 1099B with cost basis is not mentioned in 1099B and Noncovered security is checked, how do I estimate the cost basis?

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Best answer by batawfic

Sale to cover taxes is normal. It is a sale of your stocks. Think of it as if you sold the stock and they gave you the money. Then, you gave it to your employer to pay the taxes for you. So, you did get a benefit for selling the taxes.

Report it on your Sch D with any other transactions.

Uncovered means the broker does not know how much you were paid per share. You do, so you need to fill in your basis for the shares sold to cover the taxes. Check your w2 information or ask payroll.

Thanks @AmyC / @fanfare / @SusanY1 / @RobertB4444

Since I asked many questions in this thread I will summarize here:

Cost Basis when missing in 1099B, use transaction statement. In my case I actually use my bank account to calculate the fees

Some brokers had horrible 1099B, like computershare in my case that force you to go through the whole history of transaction to calculate the endless fees along the way

Sell-To-Cover is explained perfectly above and had cause the same pain since it wasn't associated with cost basis but even more complex since money never come to my bank account so I have to search my paystubs!!

Spent in this process approximately a week

RobertB4444

You're going to have to figure out what you paid for the securities that you sold. You'll need to dig through your records and statements - not including the basis usually means that you purchased the security some time ago. You may also need to contact a prior broker.

The IRS will only accept the basis for your securities with documented proof of the purchase. So you'll need to do the digging.

@batawfic

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batawficAuthor

if stocks are granted, is it true statement that cost basis is stock price at granted time?

SusanY1

Yes, if the stocks were from a grant the cost basis is the stock value on the date of the grant. This was likely included as income on your W-2 at that time, which gives us your basis in the stock. Your W-2 from the year of the stock grant should contain the information that is necessary to prove that basis, should you be asked at a later date.

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