I received a 1099-B for Solventum stock after it was spun off from 3M. There is no cost basis listed. Should the cost basis & purchase date I enter be for the 3M stock?

Forum|Forum|1 year ago
February 27, 2025
1 reply
0 views

This is on the 1099-B: "Box 5: Non-Covered Securities Transactions for which basis is not reported to the IRS and for which short-term or long-term determination is unknown by EQ Shareowner Services. You must determine short-term or long-term based on your records and report on Form 8949, Part I with Box B checked, or on Form 8949, Part II, with Box E checked, as appropriate." I've had the 3M stock since 10/6/2000 = long-term for 3M. And I know the 3M cost basis. Are these (3M info) what I enter for the 1099-B?

Best answer by JamesG1

Sorry that I was unclear.

Since the IRS form 1099-B is reporting the disposal of the Solventum stock, you should refer to the Solventum stock information. The purchase date would be the date that the date that the stock was spun-off by 3M, not the date that you purchased the 3M.

Solventum basis is different. If you paid $100 for one share of 3M, your cost basis in 3M is $100.

After the spin-off, you may one share of 3M and one share of Solventum and your cost basis is still $100. The only issue is how you allocate the cost between the two stocks.

At the time of the spin-off, shareholder services information would have revealed the relative values of the two stocks at the time of the spin-off.

As an example, if one share of Solventum was considered to be worth one share of 3M, your original cost basis would now be $50 Solventum and $50 3M equals the $100 cost basis of the original 3M share.

JamesG1

Yes, you will enter the date of purchase and cost basis from your personal trade records.

A noncovered security means a broker is not required to report the cost basis of that security to the IRS. The adjusted cost basis of noncovered securities is only reported to the taxpayer, not to the IRS. For noncovered securities, you are responsible for reporting cost basis information to the IRS when you file your taxes.

In TurboTax Online, follow these steps to enter the IRS form 1099-B.

Down the left side of the screen, click Federal.
Down the left side of the screen, click Wages & Income.
Click the down arrow to the right of Investments and Savings.
Click to the right of Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B).
Click Add investments.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

ktax2Author

I wanted to make sure it was the cost basis and date for the parent company (3M) I needed to enter and NOT Solventum (spinoff), since TurboTax was questioning me after I entered the 3M numbers because I checked that the "cost basis was missing or incorrect" and then entered my 3M information.

If the questioning by the TurboTax software is normal and does not indicate a problem, then I'll keep the entries as I've done them, with the info for 3M.

Thanks!

JamesG1Answer

Sorry that I was unclear.

Solventum basis is different. If you paid $100 for one share of 3M, your cost basis in 3M is $100.

After the spin-off, you may one share of 3M and one share of Solventum and your cost basis is still $100. The only issue is how you allocate the cost between the two stocks.

At the time of the spin-off, shareholder services information would have revealed the relative values of the two stocks at the time of the spin-off.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"