What do I do if my consolidated 1099 has both reported and not reported sales?
When entering a summary, sales with basis reported and basis not reported must be entered separately. Short-term and long-term sales must be entered separately as well. Some Form 1099-Bs and consolidated 1099s use the term "covered" to mean basis reported, and "not covered" (or noncovered) to mean basis not reported.
Example: If your consolidated 1099 has short-term sales with basis reported and short-term sales with basis not reported, you will need to enter them separately. If your consolidated 1099 also has long-term sales with basis reported and long-term sales with basis not reported, those will need to be entered separately as well. In this situation, you would need to enter 4 different summaries of sales into the software:
Example: If your consolidated 1099 has short-term sales with basis reported and short-term sales with basis not reported, you will need to enter them separately. If your consolidated 1099 also has long-term sales with basis reported and long-term sales with basis not reported, those will need to be entered separately as well. In this situation, you would need to enter 4 different summaries of sales into the software:
- A - Short-term basis reported to IRS (covered)
- B - Short-term basis not reported to IRS (noncovered)
- D - Long-term basis reported to IRS (covered)
- E - Long-term basis not reported to IRS (noncovered)
