Thanks. I understand this is not a formal tax advice. What is more reasonable way to report a zero gain transaction on 8949 in your opinion? I see 2 approaches (lets assume the first year proceeds are $10k):
- Put $10k as proceeds (column (d)) and as cost basis (column (e)), put code B in column (f)
- Put $10k as proceeds (column (d)), nothing as cost basis (column (e)), put code O in column (f) ("You have an adjustment not explained earlier in this column"), put "(10,000)" (means negative $10k) as "Amount of adjustment" (column (g)). Then print and attach an explanation on why I've made the decision. The explanation is probably only needed to respond to CP2501/CP2000, not needed when filing a tax return.
