1099-B Cost Basis Blank But Have The Value

[shawnMsrm]

My wife inherited stocks Jan 2022 and we sold them Aug 2023 so it is a long term basis reports to the IRS.

We did receive some ordinary dividends so we have a 1099-DIV we are reporting.

We then sold the stocks. The document we have noting the sale of the stocks does note the Proceeds, Costs Basis, and Estimated long term gain.

We received a 1099-B, but "1e (Cost or other basis)" is blank.

In Turbo Tax,  within "Box 1e - Cost or other basis" should I enter the value Costs Basis value even though the cost basis on the 1099-B is blank? As noted above, when we sold the stocks the cost basis was listed documenting the sale and the stocks were inherited.

Since the 1099-B "1e (Cost or other basis)" is blank but I do know the value, should I also checked "The cost basis is incorrect or missing on my 1099‑B?"

Thank you

Shawn

[MarilynG1 · Accepted solution]

Yes, you correctly indicated 'cost basis is incorrect or missing' in TurboTax when entering your 1099-B for sale of inherited stock, since it is blank on your form.  On the next screen, you can then enter the correct Cost Basis. 

The Cost Basis is the value of the asset at the time of the decedent’s death, which may the Cost Basis reported on on the additional document you received, and which you could then enter in TurboTax. 

You could confirm that with the Broker, or look up the value of the stock on the Date of Death online.

Here's more info on Stock Cost Basis. 

[fanfare]

If your transaction shows with Box E or Box B,

answer yes to the question so you can enter the basis  and  set the proper code "B".

enter the actual basis and put -0- in column (g).

@shawnMsrm 

[shawnMsrm]

Thank you for the guidance.

To confirm, I entered some example data below to make sure I was completing it correctly. I am then promoted to confirm the cost basis value. Is below correct?

Thank you.

Shawn

[julbrain]

My cost basis is blank on my 1099-B, but I was able to find the correct number to enter, so as you said, I chose "cost basis is incorrect or missing."  However, when I enter the amount on the screen that says "I know my cost basis and need to make an adjustment" and hit continue, it takes me back to the sales page and that sale is listed as "needs review" and Turbo Tax tells me I need to go back and fix things in that section so I can file.  

[PaulaM]

First try to eliminate some basic causes. If you are using TurboTax online, first try clearing your cache and cookies then sign back in and revisit the section. Report back if issue persists.

[julbrain]

Thank you.  I did try eliminating basic causes (updating Turbo Tax, restarting Turbo Tax, deleting the form and putting it in again, etc.).  I am using the PC desktop version of TurboTax Home and Business.  I did try the suggestion above to put in the actual cost basis, even though it is blank on my form.  That does fix the problem, but I just wanted to make sure there isn't an issue with putting something on the form that isn't actually there.  

[JamesG1]

It is not uncommon to make adjustments to the cost basis on an IRS form 1099-B.

Make sure that you retain the record of your correction entry should a tax authority have a question about the transaction at a later time.

@julbrain