Question

Sold MMTLP Preferred shares in 2022, WeBull is reporting a zero cost basis and provided no supplemental form. Just trying to figure out how to proceed.

Forum|Forum|3 years ago
February 18, 2023
1 reply
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Having a hard time figuring out how to proceed. MMTLP were preferred shares from a spin off in 2021, I sold them in 2022. WeBull is reporting a zero cost, and TurboTax is asking me to verify the cost from a supplemental form. There is no supplemental form, so I am at a bit of a roadblock

TurboTax Premier Online

S

ShirlynW

I am assuming, you are entering form 1099-B. Here is how you would proceed:

Open or return to TurboTax.
In TurboTax, search for “1099-B” and then select the “Jump to” link in the search results.
You should see “Your investments and savings” screen, Select the sale, and click Edit.
Select the title of the sale in the Sales Section and click the pencil.
Select the type of investment.
Enter a description in Box 1a.
Enter the date you acquired the investment in Box1b.
Box 1c enter the date sold.
Enter the proceeds in Box1d.
For Box 1e, enter the amount on the 1099-B.
Put a check in “The cost basis is incorrect or missing.”
Continue.
Select if any of the situations apply to this sale.
Continue.
Select “I know my cost basis” and enter the actual cost.
Continue and you will return to the Review screen.

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C

CMNYAuthor

Thanks @ShirlynW . I think the biggest issue is that these shares were preferred shares acquired as part of a corporate action in 2021. The actual shares that triggered the dividend were sold in 2021, and the preferred shares were sold in 2022. The preferred shares are showing a zero cost basis, so the entire proceeds would be gains in this case. I guess that sounds correct to me, but I just wanted to make sure I wasn't missing anything or creating any red flags.

G

GeorgeM777

To better understand your tax situation, what firm issued the MMTLP shares to you? You mentioned in your post that the MMTLP preferred shares were acquired in 2021. Do you know the nature of the corporate action that was taken that resulted in the preferred shares being issued to you, i.e. corporate buyout, merger, special dividend, etc.?

@CMNY

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