1099 B basis is not reported to IRS and is blank

[di-mckinney]

I have a 1099 B with long-term basis not reported to IRS.   Do I simply report my known basis in the second box 'Total cost or other basis (sum of all Box 1e), even though it's blank on the 1099 B?  Or do I enter $0, then select I need to adjust my cost basis and then check 'B' cost basis incorrect on form?  

[DianeW777]

Yes, report the basis you have in your records.  You can enter the cost basis by selecting to adjust your cost basis.  Do not enter a zero, simply leave the box blank.  This simply alerts the IRS that your 1099-B did not have a cost basis.

This occurs when an investment is changed from one finance company to another which does not allow then to keep track of the cost basis from start to sale.

[di-mckinney]

Thank you~  Ok - makes sense.  And when I choose adjust total cost basis, I select code B (cost basis incorrect on form) , or do I NOT select a code?

FYI:  I'm getting an error that says needs review when I leave cost basis empty.  Do I just ignore the error?  Only way to get rid of it is to enter $0

[DianeW777]

Yes code B if it is short term holding period or Code E for long term holding period, 

1. Long term: held more than one year (one year plus one day)
2. Short term: held one year or less

[di-mckinney]

FYI:  I'm getting an error that says needs review when I leave cost basis empty.  Do I just ignore the error?  Only way to get rid of it is to enter $0 as Box 1e basis. 

My sale is long-term, but Code E doesn't seem appropriate.  Please confirm code to use?  Thx

[ThomasM125]

It is fine to enter $0 for the basis. Code E is what TurboTax uses on form 8949 when you have a long-term gain on an investment sale and the cost basis is not reported to the IRS.

[fanfare]

the expert advice above is incorrect.

From IRS instructions:

"Use Code B."

"If this transaction is reported on a Part I with box B
checked at the top or if this transaction is reported on a
Part II with box E checked at the top, enter the correct
basis in column (e), and enter -0- in column (g)."

Use of a non-zero adjustment in column (g) is for transactions with Box A or Box D checked.

@di-mckinney