You are correct. You will use the full amount of your basis to reduce your gain. There used to be a box to enter an alternate basis but that confused people. You want your 1099-S to match the sales proceeds. The workaround would be to increase your sales expenses by the additional basis so that the correct gain is recorded. While not ideal, the proper tax would be paid.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
