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Level 4
posted Feb 10, 2022 5:59:45 PM

1099-B doesn't add up

My 1099-B has a note: 

 

This transaction reflects the conversion of a short-term capital loss into a long-term capital loss. This occurs when you have a short-term loss on mutual fund shares which were held 6 months or
less, and you received a long-term capital gain distribution on those shares.

 

It looks like they moved $30 of the loss from ST to LT, which is fine.  However, the "Proceeds" and "Cost" amounts now don't add up (subtract up?) to the "Gain" amounts.  Do I need to enter an adjustment code, and if so, which one?

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1 Replies
Expert Alumni
Feb 13, 2022 10:25:52 AM

Yes,  you will need to make some adjustments in the 1099B entries.

  1. Edit your long-term transaction. 
  2. Check the box indicating your cost basis is incorrect.
  3. Check the box indicating you need to change the holding period. 
  4. Increase the amount of your cost basis by $30. For example if your basis is currently 600 make it $630.
  5. Edit the short term transaction
  6. Check the same boxes as above
  7. Decrease the amount of the basis in the box by $30.