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1099-B Additional information original basis

Got 1099-B with Additional Information column populated with "Original Basis" and different value than 1e (cost or other basis) value. 

 

Do I enter everything as in 1e and then adjust cost basis to use "original basis" from additional information column?

 

Below article didnt indicate what user needs to do, so confirming what is proper way to interpret and submit -

option a - do we use basis from additional information in 1e

option b -fill in 1e as is and then adjust

option c - do nothing (no adjustment) since 1e is accurate (additional information is for information purposes - if they have original basis why didnt they use in 1e itself? :( )

 

https://ttlc.intuit.com/community/taxes/discussion/form-8949-box-1e-versus-original-basis/01/2574695... 

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2 Replies
rjs
Level 15
Level 15

1099-B Additional information original basis

I would assume that your "Option C" is correct. The amount in 1099-B box 1e is the correct basis to report on your tax return, and the "original basis" is for your information. Keep in mind that the IRS gets only the actual 1099-B amounts, not the "additional information."


You could ask the broker or financial institution why the basis reported in box 1e is different from the original basis. You didn't say whether the box 1e basis is higher or lower than the original basis. If box 1e is higher it could have been increased because of a disallowed loss on a previous wash sale.

 

1099-B Additional information original basis

Thanks @rjs 

 

  1. one entry for one entity 1e is slightly lower 46.78 from additional information "original basis: 47.48" field, not much to gain from increasing the basis (hardly ~$0.7 gain) ... 
  2. another entry 1e is higher 4,000.24 than "Original Basis: 3,800.56" so some difference 

 

However now I recollect I had wash sale for 2nd one few years ago, so option c of using 1e makes perfect sense now. 

For #1, going over 1099 again found the reason, saw that the stock had a NonDividend distribution (under "Return of Capital and Liquidations" section of the 1099 document) of amount 0.70 (3/30), which tallies with the difference in basis. Am guessing I got ordinary dividend of $1.38 on 3/30 and then I sold the stock on 4/20 (<60/61 days - don't know ex-div date), so 'guess' something to do with that (not sure if this is how they do it, reducing basis OR <60 day rule is for qualified vs. non-qualified dividend - to research it out some other time)

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