The 1099-B is reported to the IRS. There is no way to explain something on a tax return. It is handled as demonstrated below.
You would have encountered these screens as you entered the stock:
- Did you purchase all of these investments?Any inherited or gifted investments are not considered purchased. NO
- How did you receive this investment? Inheritance
- The cost basis is incorrect or missing on my 1099-B. Check the box
You will encounter the screen below:
We noticed there's an issue with your cost basis...Let us know if you'd like to make any changes
Because the cost basis was incorrect or missing on your 1099-B, we recommend reviewing your cost basis to make sure it's reported correctly.
We've got your back and can help you figure out the correct cost basis so that you don't pay more taxes than you should.
- I need help figuring out my cost basis
- I know my cost basis and need to make an adjustment
- Actual cost basis
- I don't want to make any changes to my cost basis right now
