Hello all,
I sold a long-term mutual fund holding in 2020, and the 1099-B reported the sale in 3 parts: the short term covered shares (which included the broker-calculated cost basis and checked Box A), the long-term covered shares (which included the broker-calculated cost basis and checked Box D) and the long-term non-covered shares (for which the broker calculated NO cost basis and checked Box E). The "average cost" basis was used by the broker for the two covered sales.
I have all the purchase records for this fund, including the years that include the "noncovered" shares on the 1099-B. I believe that the broker, because it did not use the complete purchase history, did not correctly calculate the cost basis on the two covered sales. Those two cost basis numbers are both somewhat higher than they would be if the broker had used my entire purchase history for its average cost calculations.
My question: should I correct the cost basis for both of these "covered" sales and add the correct cost basis for the "noncovered" sale in my TurboTax filing? One alternative would be to leave the existing broker-calculated cost basis numbers intact, and then input a cost basis figure for the noncovered shares that would net out to the correct total gain across all three of these reported sales.
I have not changed or corrected any 1099-B information previously, so I am asking this question to see if anyone knows if this type of correction would be considered a "normal" and proper adjustment on a tax filing. I am confident of my self-calculated cost basis figures, but since they differ from the broker-calculated and broker-reported figures I am raising the issue. Thank you!!
