Hi, my crypto exchange used the wrong tax lots on my 1099-DA, so the holding period and cost bases are all wrong. I have reached out to the exchange to get a corrected 1099-DA form, but I don't expect they will produce one, or if they do, they won't produce one in time to file.
How do I handle this in TurboTax? This is what I'm thinking:
In TurboTax, for the 1099-DA, for the sales section totals:
- For "Short-term transaction with basis not reported to the IRS (noncovered)":
- List total proceeds exactly as shown on 1099-DA
- List total cost or other basis exactly as shown on 1099-DA
- Select "I need to adjust my total cost basis", and enter the adjustment such that the gain loss matches what it should if using the correct cost bases.
- For the adjustment codes, only select code B (cost basis incorrect on form).
- For "Long-term transaction with basis not reported to the IRS (noncovered)":
- List total proceeds exactly as shown on 1099-DA
- List total cost or other basis exactly as shown on 1099-DA
- Select "I need to adjust my total cost basis", and enter the adjustment such that the gain loss matches what it should if using the correct cost bases.
- For the adjustment codes, select both codes B (cost basis incorrect on form) and T (type of gain or loss is incorrect).
Is this how you would handle the situation, assuming the exchange will not provide an updated 1099-DA form? Am I doing anything wrong?
