For a 1099-B with RSU transactions, do I report Cost Basis ($0) or Adjusted Cost Basis?

[Daboa]

My 1099-B and my financial institution's supplemental transaction report show my Cost Basis for RSU transactions as $0. However, the Adjusted Cost Basis is non-zero. TurboTax asks for "Cost Basis or Adjusted Cost Basis." Which do I report? Obviously, it works out much better if I can use Adjusted Cost Basis.

[LindaS5247 · Accepted solution]

You can enter the adjusted cost basis.

[Happylala]

I have the same question. Where is the screen to enter the adjusted cost basis? Any instructions?

[MarilynG1]

If you know your Correct Cost Basis, you can enter it in the Cost Basis entry field.  Save documentation for amount entered.  If you know your Cost Basis, use the regular 1099-B entry and don't indicate 'employee stock sales'.

Or, in TurboTax Online, there's a box to check for 'cost basis is incorrect', then enter the correct Cost Basis. 

In TurboTax Desktop, there's a similar screen a couple screens after the original entry.

@Happylala 

[Happylala]

I look back schedule D in box 1(e) last year. It should leave blank on 1(e) and enter the adjustment to gain or loss amount in box 1(g) in schedule D. If the amount enter in the 'Corrected cost basis' in TT (Premier which I am using), it enter 1(e) on schedule D. I think 1(e) should leave blank. Isn't it? 

[GeorgeM777]

Yes, you could leave it blank because your 1099-B reflects the cost basis as zero, which is not correct.  Report the adjusted gain/loss in box g on Schedule D as you noted in your post.  Column (g) on Form 8949, Sales and Other Dispositions of Capital Assets, may also contain the adjustment to gain or loss.  

If you are using TurboTax online, when you are entering your RSU information, check the box for The cost basis is incorrect or missing on my 1099-B.  On the next screen, you will have the option to enter the adjusted cost basis.  

If you are using TurboTax CD/download, the process to enter your adjusted cost basis is a little different.  After entering your RSU information, you will see a screen, Select any less common adjustments that apply.  Select the last one, An adjustment is required for a reason not already covered.  Enter your adjustment in the drop-down box.  A positive number will increase your gain, a negative number will increase your loss.   Because it appears that your RSU sales resulted in a loss, you will want to enter your adjusted cost basis as a negative number. 

@Happylala 

[Happylala]

The screen is a little bit different than yours. From my Premier turbotax 2022 version, I am getting 'The cost basis on ....Corrected cost basis'. I am able to enter the amount finally. Screen provided below.  However, how to enter the 1(f) code and 1(g) amount of adjustment in Form 8949?

[Happylala]

The adjusted cost basis entered on the 'The cost basis on my statement is incorrect' screen. On Schedule D, how come the amount is displaying in 1(e) but not in 1(g)?

Schedule D Part I

[AbrahamT]

There are two ways to do this, 

I - You can either enter the adjusted cost basis as if it's the actual cost basis like this

 

and will flow through seamlessly on the forms like this

or you can enter it like this

List the adjustment code as O, this will seamlessly flow to the forms like this

 

thereby creating the same net result.

All this would be entered through 

Personal Income/ Investment Income/ Stocks, Mutual Funds etc.

Enjoy.

[Happylala]

The cost basis should be "0".  I am using TurboTax Premier 2022. The Home & Business version in the Youtube tutorial was showing the demo on how to input the RSU. Why I can’t get the same results in Sch D and Form 8949? Zero in 1e and the adjustment in 1g? Attached demo screenshots.

[Happylala]

I am able to select the last one, An adjustment is required for a reason not already covered. So, where to enter the code adjustment (code B) in 1f?

[GeorgeM777]

Entering the adjustment as you did, Code B and Code T should appear in column 1 (f) of Form 8949, Sales and Other Dispositions of Capital Assets. 

@Happylala