Question

1099-B issue for disbursed fees 2 years after sale...

Forum|Forum|6 years ago
March 18, 2020
1 reply
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My situation was with a disbursement of $ from a sale of a company i owned shares in. The sale happened in 2017 but funds were held back to cover closing costs, bankers, etc. That money was finally released in 2019. My 1099 B that I received says the date of the sale was in 2017 (which is true) but I just got the money in 2019. I can't find a way to submit this on TurboTax. I spoke to the company that issued the 1099-B and they said that the form was right but it was a limitation of Turbo Tax and I should switch software - this is the last thing I need to enter before I file so I'm not excited about going back to Start.... help!

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john1971Author

this seems to have stumped the experts....

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JulieS

The instructions for Form 1099-B say very clearly that the date sold in box 1c is the date that the trade occurred, or that the cash was constructively received.

Is the 1099-B form for 2017 or 2019?

If it is a 2019 1099-B form, the date in box 1c, should be the date that the money was constructively by you, not the date back in 2017 that the original sale occurred.

The easy workaround is to simply change the sale date to the date that you received this money in 2019, assuming this is a 2019 1099-B form.

If it is a 2017 1099-B form, you need to amend your 2017 tax return to add the amount.

As far as this being a TurboTax problem, all tax software I have ever used only allows you to report current year sales.

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john1971Author

Thank you! It is a 2019 form but I do have the dates I received the cash (it was actually two different payment dates but I'll just add them up and pick one as they were both in 2019).

Okay, when I did that, I got the 'date disposed' box out of the red but it is still asking me for my cost basis. I bought the shares in 2000 for $10,000 but ended up selling for over $200,000. The $ I received in 2019 was just over $7,000 so i'm not sure what to do for the cost basis?