topic 1099-B "N/C" Causing a Discrepancy in After you file

1099-B "N/C" Causing a Discrepancy

__donnie — Fri, 23 Feb 2024 21:56:30 GMT

I sold shares of a limited partnership. I had a gain of $345 on the sale, but the 1099-B has “N/C” in the gain or loss column (“Results may not be calculated for transactions which involve the repayment of principal, the sale of partnership interest”…etc.) I imported the 1099-B into Turbotax, and Turbotax, seeing the $345 difference between the proceed and cost basis, shows this as a $345 gain, but since the 1099-B doesn’t, there is a discrepancy in the total gain/loss between the two. What should I enter? Zero to agree with the 1099-B, or $345 to agree with Turbotax?

Re: 1099-B "N/C" Causing a Discrepancy

ThomasM125 — Thu, 29 Feb 2024 00:22:37 GMT

You should report in TurboTax the actual gain, which seems to be $345 in this instance. The Form 1099-B should list at a minimum the sale proceeds and either a cost basis of a positive amount or $0. If the stated cost basis is wrong, you should adjust it by entering the correct cost basis. You will see an option for doing this after you enter your Form 1099-B in TurboTax. That is all you need to do even if the Form 1099-B does not show a gain or loss amount.

Re: 1099-B "N/C" Causing a Discrepancy

__donnie — Thu, 29 Feb 2024 01:52:59 GMT

Thanks for the response, Thomas. This makes sense, however I'm just concerned that a discrepancy between the 1099-B reported to IRS and Turbotax having something different might raise a flag for an audit (at least some of the comments I read online suggested that might be the case). Being uncomfortable with this, I've just turned the return over to a CPA to complete.