“Undetermined transactions for noncovered tax lots” refers to transactions involving noncovered securities. You can find relevant definitions in the Covered Security and Noncovered security sections of the IRS’ 2021 Instructions for Form 1099-B, and I provide the IRS’ definition of noncovered security, below. What you probably really want to know, though is – how is it handled in TurboTax? You can find two good discussions of how to deal with this in Undetermined term transactions for noncovered tax lots and How to input undetermined term transactions for noncovered tax lots on 1099-B, two previous Community threads. According to the instructions linked above, the following securities are not covered securities: Stock acquired in 2011 that was transferred in 2011 to a dividend reinvestment plan that meets the requirements of Regulations section 1.1012-1(e)(6). However, a covered security acquired in 2011 and transferred to a dividend reinvestment plan after 2011 remains a covered security. For purposes of this rule, stock is considered transferred to a dividend reinvestment plan if it is held in a plan that is not a dividend reinvestment plan and the plan amends its plan documents to become a dividend reinvestment plan. The stock is considered transferred as of the effective date of the plan amendments. A security acquired due to a stock dividend, stock split, reorganization, redemption, stock conversion, recapitalization, corporate division, or other similar action, if the basis of the acquired security is determined from the basis of a noncovered security. A security that, when acquired, did not have to be reported on Form 1099-B because it was acquired from an exempt recipient or an exempt foreign person as defined in Regulations section 1.6045-1(g)(1). A security for which reporting is required by Regulations section 1.6049-5(d)(3)(ii) (certain securities owned by a foreign intermediary or flow-through entity). A debt instrument if the terms of the debt instrument are not reasonably available to the broker within 90 days of the date the debt instrument was acquired by the customer and the debt instrument is either a debt instrument issued by a non-U.S. issuer or a tax-exempt obligation issued before January 1, 2014.

Question

What is a Undetermined transactions for noncovered tax lots on my Webull 1099 Composite form?

Forum|Forum|4 years ago
February 17, 2022
1 reply
0 views

No text available

TurboTax Premier Online

J

JohnW152

“Undetermined transactions for noncovered tax lots” refers to transactions involving noncovered securities. You can find relevant definitions in the Covered Security and Noncovered security sections of the IRS’ 2021 Instructions for Form 1099-B, and I provide the IRS’ definition of noncovered security, below.

What you probably really want to know, though is – how is it handled in TurboTax?

You can find two good discussions of how to deal with this in Undetermined term transactions for noncovered tax lots and How to input undetermined term transactions for noncovered tax lots on 1099-B, two previous Community threads.

According to the instructions linked above, the following securities are not covered securities:

Stock acquired in 2011 that was transferred in 2011 to a dividend reinvestment plan that meets the requirements of Regulations section 1.1012-1(e)(6). However, a covered security acquired in 2011 and transferred to a dividend reinvestment plan after 2011 remains a covered security. For purposes of this rule, stock is considered transferred to a dividend reinvestment plan if it is held in a plan that is not a dividend reinvestment plan and the plan amends its plan documents to become a dividend reinvestment plan. The stock is considered transferred as of the effective date of the plan amendments.
A security acquired due to a stock dividend, stock split, reorganization, redemption, stock conversion, recapitalization, corporate division, or other similar action, if the basis of the acquired security is determined from the basis of a noncovered security.
A security that, when acquired, did not have to be reported on Form 1099-B because it was acquired from an exempt recipient or an exempt foreign person as defined in Regulations section 1.6045-1(g)(1).
A security for which reporting is required by Regulations section 1.6049-5(d)(3)(ii) (certain securities owned by a foreign intermediary or flow-through entity).
A debt instrument if the terms of the debt instrument are not reasonably available to the broker within 90 days of the date the debt instrument was acquired by the customer and the debt instrument is either a debt instrument issued by a non-U.S. issuer or a tax-exempt obligation issued before January 1, 2014.