Incorrect cost basis on 1099-B

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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.

HelenC12Answer

Alumni - Intuit

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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HelenC12Answer

Alumni - Intuit

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.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"