Incorrect cost basis on 1099-B

Forum|Forum|5 years ago
March 16, 2021
1 reply
28 views

The 1099-B I received from one of the brokerage firms has incorrect cost basis listed. Do I need to contact the brokerage firm to have that corrected to reissue? Or can I just enter the correct cost basis in TurboTax when filing? If I correct it without the brokerage firm re-issue the 1099-B, will that trigger an alert of discrepancy to IRS?

Thanks in advance.

Best answer by HelenC12

Yes, you can adjust your cost basis to correct it and no, it won't raise red flags with the IRS. Cost basis corrections are a common occurrence.

Tax Tip: Your total capital gains for the year minus your total capital losses result in a net gain or a net loss.

You can deduct a net loss of up to $3,000 ($1,500 if married filing separately). Any capital loss you couldn't deduct this year can be carried forward and deducted on future tax returns as a capital loss carryover.

HelenC12Answer

Level 15

Yes, you can adjust your cost basis to correct it and no, it won't raise red flags with the IRS. Cost basis corrections are a common occurrence.

Tax Tip: Your total capital gains for the year minus your total capital losses result in a net gain or a net loss.

You can deduct a net loss of up to $3,000 ($1,500 if married filing separately). Any capital loss you couldn't deduct this year can be carried forward and deducted on future tax returns as a capital loss carryover.

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