Box E vs Box F for long term capital losses. Amend or not?

Question

I was checking my tax return and notice something on my Schwab tax form, there was a capital loss of $2000 but my cpa checked box E under long term. When I go over the tax form provided by schwab it says "The transactions in this section are not reported on Form 1099-B or to the IRS. Report on Form 8949, Part II, with Box F checked." Should I have my accountant amend my tax return so box F is checked instead of box E? Not sure why Schwab didn't report the cost basis for my penny stock when it became worthless

Not A Clue · Accepted Answer

Boxes D, E & F are all long term gain/losses. As I understand it, Box D is when both proceeds and basis are reported to IRS (covered securities). Box E is when the proceeds are reported to IRS but not the basis (non-covered securities). And Box F is when the company does report neither the proceeds nor the basis to IRS; and the taxpayer report the transaction.

So if Schwab is showing the transaction on their 1099-B, then may be you should ask Schwab why the transaction is not reported to IRS?

Is the penny stock transaction the same transaction shown as Box F by Schwab?

What caused the stock to be worthless in your case? For a stock to be worthless -- for tax purpose, there need to be a disposition. Sometimes the brokerage firm will buy it from you for a penny so that you can claim the loss. If it is a bankruptcy, there is probably a notice to you that the stock has been cancelled (or something like that) and remove it from your account, etc.

Box E vs Box F for long term capital losses. Amend or not?

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