1099 B basis is not reported to IRS and is blank

Forum|Forum|2 years ago
February 7, 2024
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I have a 1099 B with long-term basis not reported to IRS. Do I simply report my known basis in the second box 'Total cost or other basis (sum of all Box 1e), even though it's blank on the 1099 B? Or do I enter $0, then select I need to adjust my cost basis and then check 'B' cost basis incorrect on form?

DianeW777

Yes, report the basis you have in your records. You can enter the cost basis by selecting to adjust your cost basis. Do not enter a zero, simply leave the box blank. This simply alerts the IRS that your 1099-B did not have a cost basis.

This occurs when an investment is changed from one finance company to another which does not allow then to keep track of the cost basis from start to sale.

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di-mckinneyAuthor

Thank you~ Ok - makes sense. And when I choose adjust total cost basis, I select code B (cost basis incorrect on form) , or do I NOT select a code?

FYI: I'm getting an error that says needs review when I leave cost basis empty. Do I just ignore the error? Only way to get rid of it is to enter $0