I 've received a corrected 1099-B consolidated form from brokerage, do I now need to file amended return?

[imsubsij]

Hello,

I've received a corrected 1099-B consolidated form for 2018 from the brokerage, listing 1 additional transaction.

Only thing it changed as a result is lesser short term loss amount on Schedule D line 7, resulting in lesser Capital Loss carryover for 2019.

Nothing is changed on 1040, no other changes.

Do I need to amend my 2018 return, and if I do, what do I file?

Thank you so much!

[Bsch4477]

Since you would not owe more tax you would not have to amend if you’re willing to accept the decrease in capital loss carryover. 

[GiseleD]

Bsch4477 is correct, you are not required to amend in this case. However, if you don't want to lose out on this capital loss, you will need to amend 2018. Here's how:

Select a tax year for specific amending instructions.

Keep in mind: You have 3 years from the date you filed your return (or 2 years after you paid the tax due, whichever is later) to file an amended return, which means you don't have to get it done by the April 15 filing deadline.

• 2018
• 2017
• 2016

Also, if you already filed 2019, you will have to amend it as well (after you amend 2018) to properly report the capital loss carryover. Here's how:

1. Sign in to TurboTax.
2. Scroll down to Your tax return & documents (you may need to select Show), select 2019 and then Amend (change) return.
   • If you only see the option to amend 2018 or earlier, it's because you can't amend an unfiled 2019 return. Instead, just select Pick up where you left off, make your changes, and disregard the rest of these instructions.
3. Select Amend using TurboTax Online.
4. Carefully follow the instructions. Don't worry if your refund changes to $0. This is normal on amended returns.
5. When finished, we'll give you instructions for printing and mailing your amended return, as amendments can't be e-filed.

@imsubsij

[imsubsij]

Thank you for your response!

Not clear here:

>>if you don't want to lose out on this capital loss, you will need to amend 2018

It seems to be backwards - since correction in 1099-B reduces both my capital loss,  and carryover to 2019, it is a disadvantage for me to amend. Lesser carryover after amend will offset lesser amount of 2019 capital gains, and therefore more amount will be taxed in 2019 and future years. Does this make it mandatory for me to amend?

Also, since the only figure that changes for 2018 is capital loss carryover, could it be enough for me to just provide corrected carryover on 2019 schedule D, and not amend 2018? (I did not file 2019 yet)

Thank you in advance!

[Bsch4477]

You are correct. I misread your post. You should amend to make things correct. 

[Anonymous · Accepted solution]

an interesting issue.   certainly, you can change the CLCO to the correct amount on the 2019 return without filing an amended 2018 return unless the amount was material (don't ask for what material means. the IRS doesn't have one. it's more CPA terminology that can roughly translate as substantial but as to a $ or cent number it will vary from CPA to CPA).  since it'll be lower the IRS might not inquire.  if it does then you can submit with the notice an amended 2018 return.   it's rare to have a transaction like this that doesn't affect something else. the exception being a year-end stock dividend where you were entitled to whole and fractional shares but the company would not issue frac shares so they would be sold.   or it could be a transaction that occurred in 2019 that was really reportable in 2018.   I would make sure the transaction isn't also reported on the 2019 1099-B.        

[imsubsij]

Thank you @Anonymous, your solution makes sense, I will go with it.

I file 2019 tax using corrected capital loss carryover, so that all my taxes, past and future, are correct.

And I don't do anything about amending 2018 return, unless IRS requests it. The case now boils down to them not having corrected form, but having correct 1040 filed and correct taxes paid. If they decide they need the form for 2018, they will send me a notice and I will comply. The $ difference is not significant (IMO of course), and the correction is in their favor.

Since brokerage reported them this info as well, they technically should have all corrected numbers already.

Thanks for taking time to help!