I am trying to figure out how to correct the cost basis for a sale on form 1099-b. I purchased corporate bonds several years ago, this spring the company went bankrupt and the bonds were converted to stock, this stock was then sold. The cost basis (box 1e) is the value of the stock at the time of conversion, this is about half of the cost basis of the bond purchase, the sale price is slightly higher making a loss look like a short term capital gain where it's actually a significant loss. I am not sure how to fix this without raising and red flags. I have used round numbers below to show what is going on. Any help would be greatly appreciated
Box 12: short term transaction with box "A" checked
Date acquired (1b): 10/25/21
Date sold (1c): 08/26/22
Proceeds (1d): $25,000
Cost Basis (1e): $23,000
Actual purchase date of corporate bonds: 2018
Actual cost basis of corporate bond purchase: $50,000
