Hackitoff,
Thanks again for your response.
On Form 8949, I could put a B (indicating a basis adjustment) in Column f, and enter in an adjustment to the cost basis that yields the correct amount of capital gains (in this case, losses) for the transaction.
However, if I do this, am I saying that I believe the cost basis as reported by the broker is wrong? In fact, I agree with the broker's cost basis. The problem I have is with the broker's proceeds as stated on the 1099-B.
I don't see any direct way to enter in an adjustment in the proceeds reported on the 1099-B. On the instructions for Form 8949, I see that it is possible to enter in a O (for an adjustment not explained by the other options given) in Column f, and then enter in the adjustment. But if I do this, it seems to me that the reason for the adjustment won't be clear to the IRS.
(With TurboTax, how does one enter an O in Column f on Form 8949? I see that I'm not allowed to change it directly in Form 8949. I'm guessing that it has to be changed in the 1099-B worksheet, but don't see how to do this...)
Finally, I could simply change the proceeds number to what I think is right. However, since Form 8949 asks me to fill in what was given to me on the 1099-B, this option doesn't seem quite right and would certainly garner attention from the IRS.
So my choice, then, is to 1) say I'm adjusting my cost basis (when in fact I agree with the broker's cost basis); 2) say I'm making an adjustment for some mysterious "other reason," or 3) change the proceeds number to what I think is right, but is different from what is on the 1099-B.
Thanks again!
