Entering a 1099-B in Lacerte

This article will help you decide where to enter amounts and information from Form 1099-B, Proceeds From Broker and Barter Exchange Transactions, in Lacerte. Generally, these transactions are entered on the Dispositions screen per tax type:

• Individual Screen 17
• Partnership Screen 19
• S Corporate Screen 23
• Corporate Screen 15
• Fiduciary Screen 22
• Exempt Organization Screen 24

Box 1 entries

To enter box 1a, box 1b, box 1c, box 1d, and box 1e:

1. Open the Dispositions screen for the tax return type.
2. Enter the Description of property from box 1a.
3. Enter the Date acquired from box 1b.
4. Enter the Date sold from box 1c.
5. Enter the amount of proceeds from box 1d in Sales price.
6. Enter the Cost or basis from box 1e.

To enter box 1f, Accrued market discount:

1. Using the Section List to the lower-left, go to the Schedule D section.
2. Enter the amount in Accrued market discount adjustment.

To enter box 1g, Wash sale loss disallowed:

1. Using the Section List to the lower-left, go to the Schedule D section.
2. Enter the amount from Form 1099-B, box 1g, in Wash Sale amount disallowed (-1 to disallow all).

Box 2 information

Lacerte will automatically know if the transaction is short-term or long-term based on the Date acquired and Date sold. But you can override a sale to be either.

To override a sale to be short-term or long-term:

1. Open the Dispositions screen for the tax return type.
2. Using the Section List to the lower-left, go to the Dispositions section.
3. Enter a 1 or 2 in 1= short-term, 2= long-term [O].

Box 3 entries

Box 3 shows that these proceeds are from collectibles or a Qualified Opportunity Fund (QOF).

1. Using the Section List to the lower-left, go to the Schedule D section.
2. For collectibles, check the box Collectible (art, stamps, coins, precious metals, etc.)(28% rate).
3. For a QOF, make the appropriate entries in the Qualified Opportunity Fund subsection.

For more information on reporting QOF dispositions and rollovers, click here.

Box 4 entries

1. Go to the Dispositions screen available in individual and fiduciary returns only.
2. Using the Section List to the lower-left, goto the Schedule D section
3. Enter the amount in Federal income tax withheld

Box 5 information

If box 5 is checked, the securities sold were noncovered securities and boxes 1b, 1e, and 2 may be blank. For these transactions, your client, rather than their broker, handles reporting their cost basis to the IRS. This means your client's purchase records should be used to complete the Cost or basis field and to enter the Date acquired to decide whether the transaction was short-term or long-term. There's no entry in Lacerte for box 5.

Box 6 information

Box 6, Gross proceeds or Net proceeds Reported to IRS, shows whether the amount in box 1d was adjusted for premium in certain circumstances. There's no entry in Lacerte for box 6.

Box 7 entries

If checked, your client can't take a loss based on gross proceeds from a reportable change in control or capital structure reported in box 1d. The broker should advise you of any losses on a separate statement.

See Generating Form 8949, column (f) for various codes in Lacerte for information on entering Code L, nondeductible loss.

Box 8-11 entries

See Generating Form 6781 in Lacerte for details on how to enter profit or loss on open and closed contracts.

Box 12 information

If box 12 is checked, the basis for this transaction was reported to the IRS, and no entry is needed in Lacerte. But, if box 12 is blank, follow these steps:

1. In the entry grid, locate the column labeled Basis rptd: blank=to IRS, 1=not to IRS, 2=not on 1099-B.
2. Enter a 1 on the line for this transaction.

Box 13 information

Box 13, Bartering, shows the cash received, the fair market value of any property or services received, and the fair market value of any trade credits or scrip credited by a barter exchange. There's no entry in Lacerte for box 13, as the barter income may need to be reported on various schedules depending on your client's circumstances. See Pub. 525 for more information.

Related topics:

• Entering broker information for Form 1099-B transactions in Lacerte
• Reporting Form 1099-B cash in lieu of stock to the IRS in Lacerte
• Form 8949 is not Generating
• Common questions for Fiduciary Schedule D