Which investment option should be selected for 1099-B exchange transaction on ESOP shares? ESOP is not listed as an option.

Forum|Forum|1 year ago
February 21, 2025
1 reply
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This was strictly an exchange transaction due to a company buyout. I did not sell any of the original ESOP shares that were given to us by the original company years ago. Am I supposed to report this in a different section of TurboTax? I have been unable to find any answer within TurboTax.

DianeW777

It depends. If you received a 1099-B for fractional shares due to the exchange then this would be a sale without a cost basis. You would enter the sale and date acquired by selecting 'Something other than a date', then choosing 'Various'. The term would likely be long term if you held the original shares long enough.

Holding Periods:

Long term is a holding period of more than one year (one year plus one day) and receives capital gain tax treatment (0%, 10%, 15%, 20% depending on your regular rate of tax)
Short term is a holding period of one year or less and receives ordinary gain tax treatment (your regular rate)

Enter your sale using the instruction below.

TurboTax Online/Mobile:

1. Select in the left panel Tax Tools > Tools (may have to scroll down)

2. Select Topic Search at the top > Type search term > Go

TurboTax Desktop:

1. Search (upper right) > type 1099b > click the Jump to... link

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