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February 14, 2025
Question

Report Wash Sale/Incorrect Basis Across Brokerages

  • February 14, 2025
  • 1 reply
  • 0 views

Hello!

 

I had a question on how to enter this:

I had a wash sale a few years ago from a stock sale from brokerage A at a loss and purchased the shares at brokerage B within 30 days. I noted the wash sale on my taxes that year and disallowed the entire loss from Brokerage A’s 1099-B.

Of course, the 1099-B from brokerage B would not report the correct basis including the wash from the loss when I sold the stock in 2024.

 

Am I free to edit the basis from the imported 1099-B or would that flag me for audit? How could I report it if not?

 

Also an adjacent question:

I had a stock purchased directly from a company in 2020. A few years later they went public. I had to transfer the shares to my own Brokerage to sell, but their cost basis does not reflect my acutal basis at the time of purchase. Am I free to adjust the basis on the Brokerage’s 1099-B to the correct original investment amount, or would this flag? If not, how else can I report it?

 

Thank you in advance for any advice!

1 reply

fanfare
Employee
February 15, 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).

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IF you are audited, your own diligently kept records will show that you are handling the wash sale properly.