Yes, you are adding the adjustments correctly to arrive at your adjusted cost basis as indicated by our awesome Tax Champ @Mike9241. You do not want to pay tax on the ordinary income twice which is why it can be added to your cost basis. The tax basis steps are shown below again for your convenience.
- The correct tax basis is:
- What you paid originally, should be the same as what is on 8949,
- Then there is a column on the sales schedule that says cumulative adjustment to basis.
- If it’s positive add it to the original cost. If it’s negative subtract the amount
- Finally add the amount of ordinary income reported.
- The result is your corrected cost basis for form 8949.
@hybridtaxguy
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