Investors & landlords

@Excalibur97 

 

I've told you how to handle this.  Enter the proceeds as they read on the 1099-B then enter a derived basis that gets you to the correct answer - either "no gain or loss" or "a small loss due to selling commissions and fees."

 

Now, you could handle it the obvious other way: Enter the 1099-B with a derived proceeds number - cash + FMV of stock - and enter the "correct" basis.  Either way you'll need to correct the basis reported on the 1099-B - I assume the 1099-B will report $0 as the basis - and either way you'll have stated your income correctly.

 

Personally I'd use the first method as that allows the IRS to "match" your income tax return to their 1099-B, lessening the chance that the IRS will contact you.  But either way is perfectly safe as long as you state your income correctly.