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April 27, 2025
Question

When entering manual corrections to 1099-B with errors, how do enter a gain instead of a loss when there is no choice to do so

  • April 27, 2025
  • 2 replies
  • 0 views

When entering manual corrections to 1099-B with errors, how do enter a gain instead of a loss when there is no choice to do so?  You only have the choice to change Disallowed Wash Sales, but no way to enter a gain.

    2 replies

    rjs
    Employee
    April 28, 2025

    You do not enter the gain or loss. You enter the proceeds and the basis, then TurboTax calculates the gain or loss.

     

    olwi00Author
    April 28, 2025

    No, you don't enter the Proceeds & Sales when they are WRONG.  It's clear you don't know how to make corrections by editing under "Investment Income - 1099-B or broker statements" and choosing EDIT and look for the entries that are errant.

    olwi00Author
    May 1, 2025

    No one answers this question, as they even understand the question!  In response to an email, "Did you get the answer you needed" - the answer is NO.

    May 3, 2025

    if this is a transaction where the proceeds and tax basis are reported to the IRS (types A and D) and that is what was entered, why is the gain/loss wrong?  if the proceeds are wrong this creates a problem for you because of IRS matching, best would be to contact the broker to correct this.  if tax basis is wrong use the adjustment column and the enter an adjustment code from 8949 instructions.

     

    if the wash sale amount is incorrect here's what the form 8949 instructions say

     

    . If you received a Form 1099-B
    (or substitute statement) and the amount of nondeductible
    wash sale loss shown in box 1g is incorrect, enter the
    correct amount of the nondeductible loss as a positive
    number in column (g). If the amount of the nondeductible
    loss is less than the amount shown on Form 1099-B (or
    substitute statement), attach a statement explaining the
    difference. If no part of the loss is a nondeductible loss from
    a wash sale transaction, enter -0- in column

     

     

    types B and E - proceeds but not tax basis reported to the IRS should be handled the same way. However, since the IRS does not get cost basis you could short cut it by changing the tax basis. 

     

    type C and F neither proceeds nor cost reported to the iRS you could just enter the correct proceeds and tax basis. 

    fanfare
    Employee
    May 3, 2025


    For non-covered securities ( BOX B or E) showing zero (wrong) basis, enter the correct basis yourself.
    Use code "B" and put -0- in col (g).
    For Box A or D, leave basis as reported, use Code "B" and put an adjustment in col(g).
    -
    check the box indicating you have other boxes on your 1099-B to enter.

    TurboTax will  follow the rules.