What if cost or adjusted basis is "missing" from 1099-B form? Should I leave it blank?

Forum|Forum|5 years ago
March 13, 2021
2 replies
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A "Cost or Adjusted Basis" on a certain 1099-B form is missing and TurboTax is asking to fix it. How do I go about this? Should I just leave it blank?

TurboTax Live Premier Online

Best answer by JohnB5677

No, The cost basis is the amount that you paid for the investment. If you leave it blank you will be taxed on 100% of the proceeds.

You will have to determine the basis yourself. If you have records you should use those. If not, this tool may help.

You may be able to use Historical Stock Quote Prices - MarketWatch to determine the original value.

To post a correction, leave whatever is in the original entry as it is. If it is blank, leave it blank. (This will match the 1099-B posting)

Scroll to the bottom of your 1099-B entry screen
Check the box for The cost basis is incorrect or missing on my 1099-B
On the new screen None of these apply.
I know my cost basis and need to make an adjustment.
Enter your actual Cost Basis

JohnB5677Answer

Level 15

No, The cost basis is the amount that you paid for the investment. If you leave it blank you will be taxed on 100% of the proceeds.

You will have to determine the basis yourself. If you have records you should use those. If not, this tool may help.

You may be able to use Historical Stock Quote Prices - MarketWatch to determine the original value.

To post a correction, leave whatever is in the original entry as it is. If it is blank, leave it blank. (This will match the 1099-B posting)

Scroll to the bottom of your 1099-B entry screen
Check the box for The cost basis is incorrect or missing on my 1099-B
On the new screen None of these apply.
I know my cost basis and need to make an adjustment.
Enter your actual Cost Basis

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Lori4100

Level 2

I had the same issue. I was able to obtain the cost basis and acquisition dates from the financial institution. I followed these steps and selected "something other than a date" then "blank" then "the cost basis is incorrect or missing" and then on the next page, I selected "I know my cost basis and need to make an adjustment" and entered the cost basis. I am still getting an alert that this needs to be reviewed. Should I have entered this in as 1E even though it is not technically on my 1099?

AndreaGJ

Level 2

I sold a mutual fund that I had transferred to Charles Schwab in 2016. Schwab issued a 1099-B that said the cost basis was Missing, but I knew what it was from my Quicken records. However, when I entered the 1099-B in TT and left the cost basis field blank (and said it was incorrect or missing and entered the correct cost basis), TT still kept insisting I review this entry. It was driving me crazy. Finally, when TT did its search for errors at the end, it pinpointed that I must enter something in the 1099-B cost basis field. It would not take the word "Missing" but insisted on a number. When I entered 0, that was acceptable, and the Review button went away.