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paulbdmo
New Member

Turbotax wants the Cost or Adjusted Basis on one investment on my account, however the company states that this should not be reported to IRS? How can I manage this?

 
3 Replies
Mike9241
Level 15

Turbotax wants the Cost or Adjusted Basis on one investment on my account, however the company states that this should not be reported to IRS? How can I manage this?

what reason does the company give for saying it shouldn't be reported. without knowing more we can't give you an answer. 

 

Carl
Level 15

Turbotax wants the Cost or Adjusted Basis on one investment on my account, however the company states that this should not be reported to IRS? How can I manage this?

I'm just curious. How can the IRS possibly know if you have a taxable gain or potentially deductible loss on the investment, if they don't know how much you originally paid for it? I would think that if the IRS does not know what you paid for it, then the assumption would be you paid nothing for it. That would make the value of the investment 100% taxable gain.

 

fanfare
Level 15

Turbotax wants the Cost or Adjusted Basis on one investment on my account, however the company states that this should not be reported to IRS? How can I manage this?

"basis not reported to IRS " means the broker does not know the basis to report it.

It doesn't mean that you also don't report your basis.

You are required to report the basis, i.e. from your own records.

The sales category remains B or E.

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