Skip to main content
February 10, 2023
Question

I received 1099-B from Morgan Stanley at work for cashing out my stock given to me by my employer. What type of Investment is this?

  • February 10, 2023
  • 1 reply
  • 0 views
This stock share needs to be vested for 3 years prior to becoming available. I sold some shares and was wondering what type of investment should I put this as.

1 reply

JosephS1
February 10, 2023

The 1099-B should guide you on what the treatment will be for including the trades on your return.  Generally your 1099-B should show the caption for the type of trade that it was - Short-term covered with basis reported to the IRS, Short-term not covered, Long-term covered, Long-term not covered.  Each section of the 1099-B needs to be entered separately.  You are allowed to combine transactions as one provided they are from the SAME grouping.  You enter the transactions in the Investment section of TurboTax as follows:

  1. On the left side of your TurboTax screen, click on Wages & Income
  2. Scroll down to "Investments & Savings" and click show more or edit/add
  3. Click on "Add Investments"
  4. Best thing to do here in my opinion is to click on "Enter a different way"
  5. Click on the box for Stocks, Bonds, Mutual Funds and then continue
  6. Enter Morgan Stanley at the top and the account number and Payer's EIN if you so choose (not required)
  7. Now on the next page, since you stated it is stock from your employer, answer yes if it includes the items listed
  8. You can answer no if you are going to group the trades or if in fact there were less than 4
  9. Follow the remaining instructions and choices.  Whichever way you answer you will receive additional instructions

The following screenshot is provided as an example of the page you will see to enter the sales transaction:

 

I have highlighted the type of investment to alert you to the drop-down menu.  Your 1099-B or accompanying information should state what type of investment it is.

 

@kchai47 

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"