Can I amend my 2016 return to remove IRA sale reported on both Line 13 Capital gains and also reported on Line 15 as an IRA distribution?

[parkerdap]

Broker included the sale on Form  1099B BoxE (basis not reported to IRS)  and also  the same sale on a From 1099R because it was an IRA distribution. 

[dmertz · Accepted solution]

It seems likely that you need to amend your 2016 tax return.  However, both transactions still must be reported.

The reporting by the broker suggests that your shares were distributed from the IRA in-kind, then subsequently sold outside the IRA.  The key to making your tax return correct is that the cost basis of the sale reported on the Form 1099-B is the FMV on the date of the distribution of these shares from the IRA (the amount of the gross distribution from the IRA).

Since you asserted that both forms are for the same shares, when amending in TurboTax, simply change the box 1e Cost or other basis amount on TurboTax's 1099-B entry form to show the amount of the gross distribution from the Form 1099-R.

[dmertz]

(I'm assuming that there are no other shares of the same security involved, such as might be the case if the shares were transferred in-kind from the IRA to your brokerage account where you held others of the same shares and you use the average-cost method of tracking cost basis.)

[parkerdap]

Your response makes sense and I will amend my return to reflect that change. Thanks

[dmertz]

If the intent is to end up with cash from the IRA, it's generally simpler to sell the shares within the IRA and then distribute the cash instead of doing an in-kind distribution.  Selling the shares within the IRA and distributing cash eliminates the need for a Form 1099-B.