2023 Turbo Tax software is not asking FMV or original cost basis on my gift stock sales. How do I enter these?

Forum|Forum|2 years ago
March 23, 2024
1 reply
0 views

I get the pull down menu and click it is a gift stock but cannot get the software to offer anymore. My 1099-B shows a gain but sold gifted stock for less than original cost basis and more than FMV at time of gift so there shouldn't be a gain or loss. The only way I can figure to do that is to say 1099-B is wrong and enter the same as sale for basis. Will this be okay?

TurboTax Online

JamesG1

You are correct.

IRS Publication 551 Basis of Assets, page 9 states:

If you use the donor's adjusted basis for figuring a gain and get a loss, and then use the fair market value (FMV) for figuring a loss and have a gain, you have neither gain nor loss on the sale or disposition of the property.

Adjust the cost basis to reflect $0 gain/loss on the sale of the investment. Retain of record of your correction entry should a tax authority have a question about the transaction at a later time.

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