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March 23, 2020
Question

Sold stocks gained from class action law suit. How do I indicate what is the sales category

  • March 23, 2020
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1 reply

March 23, 2020

Is the sale reported on a 1099-B Proceeds from broker?  Does the 1099-B report date acquired (1b) and date sold (1c) or can you confirm those dates through other records that you have?  Are you able to determine the original basis of the investment?

 

Long-term transactions mean that you owned the investment at least one year and one day.  Short term transactions mean that you owned the investment less time than a long-term investment.

 

Covered transactions mean that the broker is required to report the adjusted cost basis for the investment.  A noncovered transaction means that the broker did not report the adjusted cost basis for the investment.

 

 

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