Reporting small Cash in Lieu

Forum|Forum|2 years ago
February 28, 2024
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Hello - just a question please on reporting cash in lieu

I have a 1099-B with a small cash in lieu payment from a spin-off. It's shown on the last page "other investment activity" section in the 1099-B - so not in any table or "box" #. I know the dates, and the basis, and its long term from 2011, etc.. This other transaction does not show with the 1099 import so i'm assuming i need to add manually.

What's throwing me off is the TurboTax desktop instructions. The new automated instructions when you click 1099 "add more sales" goes through a series of questions saying enter your data must be "exactly identical to the 1099" and it asks what box number it shows up. Just confused about what to select

- is this long term basis considered reported or not reported (since its in an other section of the 1099)

or is it long term basis did not receive 1099 form (since its not formally in a "box")

- also do i select the checkbox that says "basis missing from 1099 form" or ignore this

thanks for any help !

Best answer by DavidD66

You should select Box F. The question about the cost basis being incorrect or missing is irrelevant in this case.

DavidD66

The "Other Information" is not actually part of the Form 1099-B. It is just reported along with it. You should enter it as if it was not reported on the 1099-B. If you enter as if it was reported on the 1099-B then check the box for "basis missing...".

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DXY2021Author

thanks so much for the info - that makes sense

just as a quick follow up - this is a long term item - should i select "long term basis not reported to IRS (non covered) BOX E" or "unknown term basis not reported to IRS" or "long term did not receive a 1099 form BOX F" (i'm thinking the Box F may be the right one?)

Also I wasn't planning on checking the box "The cost basis is incorrect or missing on my 1099‑B" as i'm not sure what that does in the software

thanks again for any help