topic Re: 1099B rounds proceeds vs cost basis calculation too early for Box A Box D and Box E transacti... in Investors & landlords

1099B rounds proceeds vs cost basis calculation too early for Box A Box D and Box E transactions. Is the difference calculated correctly on 8949?

Akblackdog — Mon, 22 Mar 2021 17:17:27 GMT

The rounded calculations do not match the numbers downloaded on 1099B.

Re: 1099B rounds proceeds vs cost basis calculation too early for Box A Box D and Box E transacti...

MinhT1 — Mon, 22 Mar 2021 17:40:57 GMT

TurboTax rounds all proceeds and cost basis numbers to the nearest dollar. So when these rounded numbers are added up on form 8949, there can be a rounding error which be large in dollars as half the number of entries on form 8949.

This is accepted by the IRS. And you should worry about these differences with the totals reported on your broker's forms 1099-B.

Re: 1099B rounds proceeds vs cost basis calculation too early for Box A Box D and Box E transacti...

fanfare — Tue, 23 Mar 2021 02:55:41 GMT

@Akblackdog

The answer from the "expert" is nonsense.

Use the "I'll enter a enter a summary" option, and your filed totals will match exactly totals on your consolidated 1099-B which is sent to the IRS.

Or find another tax software provider that handles it correctly.

See also the many other threads on this forum where this topic is discussed ad nauseum.

Re: 1099B rounds proceeds vs cost basis calculation too early for Box A Box D and Box E transacti...

Akblackdog — Tue, 23 Mar 2021 16:52:07 GMT

fanfare:

Yeah, I went back and looked at previous TurboTax returns. It recorded and reported the exact entries. Talked to one of their tax advisors yesterday and he just kept saying the IRS allows rounding. Rounding is fine for the final calculation but not when its rounded at every interim step in the calculation, especially when the difference is measured in cents...not dollars!!

I saw all the posts. Looks like TT will be losing a lot of customers this year.