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taxesohmy2017
Level 3

1099-B question in regards which Cost Basis do I use.

I am working on my 2021 tax return and I received a 1099-B for sale of stocks. Here is what is listed

Acq date: 10.25.19

Sold date: 11.10.21

Proceeds: $55,000.00

Cost Basis: $52,173.53

Gain: $2,826.47

 

Under additional information the following is listed: the word Redemption is listed and the letters AA in small superscript font, and the next line has Original basis: $50,005.00

Which cost basis do I use when reporting sale of stock - the $52,173.53 or the $50,005.00

 

Also on the same form there is 1099-OID

on line 1 - Original issue discount for the year has an amount of $1,853.62 - looks like that is taxable income to me, is that correct?

 

thank you

4 Replies
Critter-3
Level 15

1099-B question in regards which Cost Basis do I use.

There are 2 issues here ... the OID is reported as interest on the Sch B and the sale(redemption) to be reported on the Sch D.   So you will use the 1099-B info as written on that form in the program.  The OID interest (taxed separately) is automatically added to the cost basis as the broker has done. 

taxesohmy2017
Level 3

1099-B question in regards which Cost Basis do I use.

thank you for your reply.

yes, I did enter the OID separately and it appears on my schedule B as taxable income and its being listed on line 2b as taxable interest on my tax return for $1855

 

And the sale of stock yes, I knew it would be listed on Schedule D and it would be long term in my case due to the holding period. 

 

You're saying that the broker added the OID to my cost basis and I would use the cost basis listed under cost basis column  for $52K - correct? because that is what I did and I have a gain of $2826 that I will be paying tax on

 

Just wanted to make sure I entered it correctly and reported the correct the amounts.

Mike9241
Level 15

1099-B question in regards which Cost Basis do I use.

there should have been OID maybe in 2019 but certainly in 2020 

taxesohmy2017
Level 3

1099-B question in regards which Cost Basis do I use.

I didn't receive a Form 1099-OID in 2019 or 2020 via mail or from my online account for those tax years.

 

I received the 1099-OID for tax year 2021 showing that amount for $1854 on line 1 Original issue discount for the year on the form 1099-OID

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