rjs
Level 15
Level 15

Investors & landlords

Did the broker report the basis to the IRS? The 1099-B or equivalent brokerage statement tells you. If the basis was not reported to the IRS, you don't use any adjustment code at all. Just enter the correct basis, including the step-up. There is no adjustment. If the basis was reported to the IRS, use code B, for incorrect basis on the 1099-B.