Hi. For ESPP and RSU sales, usually the cost basis on 1099B is wrong and needs to be adjusted . What code for adjustment (B, C, etc) needs to be chosen?

Usually the adjusted values are reported as a supplemental form from one's brokerage.

223

Expert Alumni

Feb 20, 2022 9:06:04 AM

You would want to use adjustment code B. That indicates that the reported basis is incorrect on your 1099-B.