You should use the option 2, since the IRS may want to match the cost basis reported on the form 1099-B to the entry on your tax return. Here are the steps in TurboTax:
- Choose the Federal option on your left menu bar
- Choose Wages & Income
- Choose the Investments and Savings (1099-B, 1099-INT, 1099-DIV, 1099-K, Crypto) option
- Choose the Stocks, Bonds, Mutual Funds option
- Enter your Form 1099-B information and check the box that says "The cost basis is incorrect or missing on my 1099-B" and you will see an option later to enter the correct cost basis
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