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Lane
Lane, JD, CFP, MBA, CRPS
Category: Finance
Satisfied Customers: 10911
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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My name is ***** ***** i sold some vested class a stock last

Customer Question

Hi, my name is ***** *****
JA: Thanks. Can you give me any more details about your issue?
Customer: i sold some vested class a stock last year to cover major home repairs. I noticed they are listed as 'non-covered' on my 1099-B. Im not sure what that means exactly, but I wanted to know if I will be expected to pay taxes on this sale?
JA: OK got it. Last thing — Financial Professionals generally expect a deposit of about $18 to help with your type of question (you only pay if satisfied). Now I'm going to take you to a page to place a secure deposit with JustAnswer. Don't worry, this chat is saved. After that, we will finish helping you.
Submitted: 1 year ago.
Category: Finance
Expert:  Lane replied 1 year ago.

I hold a JD (Juris Doctorate, a doctoral degree in the law), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in finance & tax, as well as CFP® and CRPS designations. - I’ve been providing financial & tax advice since 1986.

Hi, I can help here.

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The box 6 "not covered" refers to whether the cost basis information on the sale was reported (covered) to the IRS as part of the 1099-B or not.

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What this means is that you'll have to report the basis (form 8949, which flows to schedule D) to determine whether you have a gain on the sale of the stock or not.

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Restricted stock becomes taxable upon the completion of the vesting schedule. So the value that was added to your income for tax purposes at that time is your basis, and the proceeds of sale reported on the 1099-B (together) determine whether you had a gain or loss on the sale

Expert:  Lane replied 1 year ago.

See this from IRS:

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if the shareholder does not sell the stock at vesting and sells it at a later time, any difference between the sale price and the fair market value on the date of vesting is reported as a capital gain or loss.

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Expert:  Lane replied 1 year ago.

I sincerely ***** ***** has helped!

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Please let me know if you’d like to go further.

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If this HAS given you enough info, I'd really appreciate a positive rating (using that rating request or the stars on your screen)

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That's the only way I'll be credited for the work here.

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Thank you!

Lane