@luke622 Let's work with some made-up real numbers, since I find that writing about "subtract this from that" when dealing with both negative and positive numbers, gets confusing. And I'm sure I've been guilty of getting it wrong once or twice when trying to answer, so with numbers:
Let's say you bought for $30k, and sold for $38k. There's your $8k CG on original purchase.
Let's also say your Cumul Adj were -$18k. So that lowers your basis to $12k, and gives a Total Gain of $26k
But that $26k isn't all taxed at the same rate. Some of it, the Ordinary Income, is going to be taxed at regular, W-2 like, rates. The rest gets CG rates. So you break the $26k into two pieces: The Ord Income, and the CG. So if you had $24k in Ord Income, you'd only want $2k to show up as CG. So your basis on the 1099-B would have to be $36k.
Hope that gets you to what should be on the forms. If I wrote something somewhere that states it incorrectly, let me know and I'll go see if I can edit it.
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**Note also, I'm not a Tax Preparer/CPA. Just a volunteer, seasoned, TurboTax user.
Use any advice accordingly!
