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1099-B ESPP and Dividend Reinvestment

I sold some ESPP stocks last year which included some dividend reinvestments. The 1099-B shows the total shares sold including the reinvested dividends. I also have a

1099-DIV which includes those same dividends plus some additional ones. I'm trying to figure out how I enter this information into TurboTax. When I entered the ESPP purchase I entered the data from the 1099-B form. However in order for all the numbers to add up I would need to include the reinvested dividends but I'm not sure how to enter them since TurboTax will complain if the numbers don't add up. For example, the 1099-B shows Box 1a: 09/15/05 Box 2: $10,000.00 Quantify: 500

For this example I purchased 450 shares through my ESPP and

50 shares through dividend reinvestment. For the 450 shares I have the purchase date, grant date, etc. For the 50 shares I have the purchase date, price/share, number of shares. Would I enter the purchase date under the grant date and the FMV the price/share? Thanks, - S

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Reply to
SkyManX
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That makes no sense. The 1099-B shows only sales proceeds. You have to compute the basis yourself.

You overestimate it. It will take whatever numbers you put for your basis, since it knows no better.

Ah, so we're using the interview. If you can't figure out how to do this through forms entry rather than the interview, give up and go pay someone to do your return rather than incurring the medical expenses of a stroke. If you sold all your shares it should be pretty easy through forms entry mode. Your basis is the total invested, including reinvested dividends and any amounts deemed to be wages. You do have to split it between long and short term holdings. Then you go to the 1099-B input form and plop the information in the appropriate spaces, using "various" for the purchase dates, as appropriate, as you'd know from the Schedule D instructions if you were doing the return without the "assistance" of software.

-- Phil Marti Clarksburg, MD

Reply to
Phil Marti

The ESPP shares are handled under the rules for qualified stock options. How you report them and compute ordinary gain and capital gain/loss will depend upon whether you had a qualified or disqualified disposition. The 50 shares you purchased via dividend reinvestment are treated the same as any other over the counter purchase. You use the actual date of purchase and the price you paid as their cost basis. If there were lots of small transactions, you can lump all the short term transaction together and use "Various" as the purchase date. Ditto for the long term transactions.

Reply to
A.G. Kalman

Wow. And this forum is moderated?

Reply to
Chris Cowles

A succinct helpful reply. Many thanks. I had exactly the same question as the OP.

-- Chris Cowles Gainesville, FL

Reply to
Chris Cowles

Amazing isn't it?

Fortunately, there are not a lot of that kind of reply here.

-- To email me directly, remove CLUTTER.

Moderator: I let Phil's reply through because it is just paraphrasing the adage that if you can't prepare a return with pencil & paper, software will not help you. In the next well-needed update to the website, there will be a page with links for software assistance.

Reply to
Vic Dura

Personally I think that Phil's comment, while a bit harsh, was not out of line. As far as moderation, I think a light hand is called for, and Dick does an outstanding job. Stu

Reply to
Stuart A. Bronstein

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