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incorrect cost basis on 1099, Volkswagen stock (VLKPY) converted to OTC in 2018 with new symbol VWAPY

I own Volkswagen 300 stocks (VLKPY) since 2015 and it is converted to OTC in 2018 with new symbol VWAPY . I was told by brokerage firm either to cash out or convert to OTC stocks, I opted for conversion and my account was updated with 600 VWAPY (2*300VLKPY) in Feb-2019 and I have sold all my 600 shares in Dec-2019. Now the my 1099 form show my VWAPY cost basis as 0 and also aquired date as Feb-2019. I have two problems here

1. 1099 has incorrect cost basis (0)

2. It is showing as short term holding. 

 

How to file my 1099 correctly? Appreciate your help, I am worried with only one remaining for filing.

Thanks

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1 Reply
maglib
Level 11

incorrect cost basis on 1099, Volkswagen stock (VLKPY) converted to OTC in 2018 with new symbol VWAPY

@ravileos  this happens quite frequently and 1099 data is often wrong.  It will not raise any red flags with the IRS. You may ask your broker to issue a new 1099 but, they probably won't.

If you type the 1099-b in yourself which I always highly suggest, after entering there will be a screen "select any less common adjustments that apply"

You will choose both

"the reported holding period (Short term) is incorrect" and

"The cost basis on my statement is incorrect" where a box will allow you to enter the correct cost basis. 

Or if you imported them:

  1. On the Review your sales screen, select the pencil icon next to one of your sales
    • You may not see this screen if you chose to enter your 1099-B another way
  2. On the Now, enter one sale on your 1099-B screen, check the box next to The cost basis is incorrect or missing on my 1099-B and select Continue
  3. On the Let us know if any of these situations apply to this sale screen, check the box next to None of these apply and select Continue
  4. On the We noticed there's an issue with your cost basis… screen, select I know my cost basis and need to make an adjustment and enter the amount
    • You can find your adjusted cost basis on a supplemental form provided by your financial institution. It’s usually available by mid-February along with Form 1099-B
  5. Select Continue

 

**I don't work for TT. Just trying to help. All the best.
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