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Level 1
posted Mar 27, 2024 11:27:28 PM

Incorrect 1099-B with cost basis showing zero

I had some RSUs/ and ESPP from previous employer. Recently the company got acquired and the RSU/ESPP stocks are settled in Cash & Stock settlement. That is 50% is settled in cash 50% is settled as a converted stock from new employer. Even though this transaction was all correct, the financial where I have the stock plan account didn't include my actual cost basis in the 1099-B. I am suppose to have loss on the amount settled in cash but as the financial institution is showing my cost zero in the 1099B, I am suppose to pay tax now for this amount. What is my options ? I am not very hopeful to get any help from financial institution as they are saying it is a problem from my older employer and My older employer is not responding to my query in this regard. What is my options now ? Shall I manually calculate everything as per the actual cost basis ? Or I should go with the amounts mentioned in 1099B. Kindly give some guidance on this

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1 Replies
Expert Alumni
Mar 28, 2024 1:46:43 PM

If you can determine the correct cost basis, you should adjust the cost basis reported on your Forms 1099-B to the correct cost basis. You will see an option for this when you enter your Form 1099-B sales information in TurboTax:

 

Once you indicate that you need to adjust the cost basis, you will see an option to enter the adjusted cost basis: