When entering sales of employee stock purchase plan stock, Turbo Tax mentions that the Box A (or D) 1099-B cost basis provided by the financial institution is incorrect and the supplemental information they provide has the correct cost basis. I have both of these cost basis numbers and can see the difference. When I choose to make adjustments, it appears there are adjustment codes to use. What is the correct code to use in this case (ESPP stock sale adjustment)?
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With the sale of ESPP stock you have 2 ways of entering the sale:
Either method, properly done, should result in a correctly entered sale. The first method puts a "B" in column (f) of the Form 8949 while the second method puts an "O" in column (f). As far as I can remember TurboTax has always entered transactions using the two methods with these two different codes. Code "B" would seem to be the correct code here given the IRS's instructions:
However, your obligation as a taxpayer is to properly report your income. Having done that you are pretty much bullet proof when it comes to the IRS and I wouldn't lose a minutes sleep over what codes are used in column (f). You can go into "Forms mode" and override the code TurboTax has used, but I just wouldn't bother; at this point we're simply talking about "style", not "substance".
Tom Young
With the sale of ESPP stock you have 2 ways of entering the sale:
Either method, properly done, should result in a correctly entered sale. The first method puts a "B" in column (f) of the Form 8949 while the second method puts an "O" in column (f). As far as I can remember TurboTax has always entered transactions using the two methods with these two different codes. Code "B" would seem to be the correct code here given the IRS's instructions:
However, your obligation as a taxpayer is to properly report your income. Having done that you are pretty much bullet proof when it comes to the IRS and I wouldn't lose a minutes sleep over what codes are used in column (f). You can go into "Forms mode" and override the code TurboTax has used, but I just wouldn't bother; at this point we're simply talking about "style", not "substance".
Tom Young
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