Adjusting cost basis on 1099-B

[JAAA4]

How do I adjust the basis on my 1099-B to reflect the correct basis from my sales worksheet from my Schedule K-1? I calculated my adjusted basis, however I am having trouble finding where to put this as in my forms, only a 1099-B Worksheet is listed which won't let me change any numbers.

Please help! Thank you.

[Mike9241]

the easiest way is to just change the cost because it is not reported to the IRS and not enter a code

the 8949 instructions say If this transaction is reported on a Part I with box B checked at the top or if this transaction is reported on a Part II with box E checked at the top, enter the correct basis in column (e), and enter -0- in column (g) and enter code B. the only difference is the entering of the code or not.

[JAAA4]

Thank you. So change the cost on form 8949? I have seen other posts that said to change the cost on form 1099B? 

The transaction is reported on part 1 with Box B checked.

[JAAA4]

8949 will not let me edit or change the cost or enter anything into the form. How do I edit the form?

[ThomasM125]

You should enter the form 1099-B as it is reported to you. Then, you will see an option to adjust the cost basis if it is not correct. Once you do this, it will be reflected properly on form 8949.

1. Choose the Federal option on your left menu bar
2. Choose Wages & Income
3. Choose the Investments and Savings (1099-B, 1099-INT, 1099-DIV, 1099-K, Crypto) option
4. Choose the Stocks, Bonds, Mutual Funds option
5. Enter your Form 1099-B information and check the box  that says "The cost basis is incorrect or missing on my 1099-B" and you will see an option later to enter the correct cost basis

[tpeters623]

Thank you both for the quick response.  Does checking the box "The cost basis is incorrect or missing on my 1099-B" inform the IRS that there is a problem?  Since I am limited to the $3,000 annually capital loss write off, it won't be until the 2028 tax year that the capital loss carryover would impact the amount of tax I owe.  By using the correct cost basis I will owe approximately $60 more in taxes than if I used the incorrect 1099B.

[JamesG1]

Checking the box will inform the IRS that you are reporting a cost basis that is different from what was reported to the IRS by the issuer of the IRS form 1099-B.  

There are many valid reasons why this might be the case.

Retain the cost basis information with your income tax records should a tax authority have a question about the transaction at a later time.

@tpeters623 

[tpeters623]

As suggested, I edited the cost basis and checked the box that said "The cost basis is incorrect or missing on my 1099-B".  When I then looked at form 8949 column F was populated with "B" and column was populated with "0".  I assume that this correct and I am good to go?

[ThomasM125]

The code "b" in column F in part II of Form 8949 would mean the cost basis listed on your Form 1099-B was incorrect. I'm not sure what column you entered the "0" in so you would have to clarify that better for us to help you.

@tpeters623