Question Regarding 1099-B Cost Basis Not Reported to IRS Entries

Forum|Forum|5 months ago
February 3, 2026
1 reply
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This feels like a bit of a unique situation for me. I have entries on my 1099-B under OTHER TRANSACTIONS - Cost basis not reported to IRS - Form 8949, (X).

There are stocks and warrants present, saying Cash/Lieu, bought and sold on the same day, with proceeds ranging from 30 cents to $10, and the cost basis showing N/A.

There are some warrants showing Abandonment, that have unique acquisition and disposal dates, with $0 in proceeds and the cost basis showing N/A.

There was one warrant present in the Covered Short Term Capital Gains section (8949 Part I) (A), also called Abandonment, with proceeds and cost basis showing $0.

Here is where it gets very murky to me. I never acquired the warrants that are present in either of the sections. They are very clearly warrants of companies whose shares I bought and still have. I am trying to figure out if this constitutes "No" for the question "Did you buy every investment listed on your 1099‑B?"

And secondly, how would I handle the N/A cost basis for all of these stocks and warrants that were seemingly given to me automatically from my brokerage?

TurboTax Premier Online

ThomasM125

Level 15

From what you said, it appears that you did not buy the stocks, so you should answer "no" to the question regarding having purchased them. For the ones with proceeds and cost basis of $0, you don't need to report them as they have no income or expenses associated with them. If there are sales proceeds reported but no cost basis, you should enter the proceeds but enter no cost basis for them.

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