Cost basis statement error

Forum|Forum|2 years ago
January 16, 2024
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A public company I had shares in got bought out last year. In addition to the cash, I got a CVR for each share. In Charles Schwab's "Relaised Gain/loss " statement, the whole transaction is being treated as gain without substracting the original cost basis. The cost basis was instead transferred to the CVRs. I have received CVRs on multiple occasions prviously but the cost basis for thse is supposed to be zero and most of the time and invariably these end up being worthless. I have contated Charles Schwab's Cost Base department but I am getting bounced around without any resolution. I want them to substract my cost basis from the toal transaction to reflect the correct gain. Can I make these changes on my own in my tax return even if Charles Schwab's statement is inaccurate? I have all the documentation for the original cost basis.

TurboTax Online

Mike9241

Schwab may issue a corrected 1099-B in the future once it gets info from the company. Every year from my broker I get corrected 1099-Bs as compnaies report basis adjustment to the brokers. One year I got 6 including one in November. Assuming you are correct as to allocatoion of cost basis you can correct this on the 8949 Here are the IRS instructions expanded. use code B incolumn f

• If this transaction is reported on a Part I with box B (tax basis not reported to the iRS) of the 1099-B
checked at the top or if this transaction is reported on a
Part II with box E (tax basis not reported to the iRS) on the 1099-B checked at the top, enter the correct
basis in column (e), and enter -0- in column (g).
• If this transaction is reported on a Part I with box A (tax basis reported to IRS) on the 1099-B
checked at the top or if this transaction is reported on a
Part II with box D (tax basis reported to IRS) on the 1099-B checked at the top, enter the basis shown
on Form 1099-B (or substitute statement) in column (e),
even though that basis is incorrect. Correct the error by
entering an adjustment in column (g).