☰
✕
Sign In

Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 1
posted Mar 15, 2021 9:15:10 PM

Incorrect cost basis on 1099-B

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. 

0 1 5120
1 Best answer
Expert Alumni
Mar 16, 2021 7:15:11 AM

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.

 

1 Replies
Expert Alumni
Mar 16, 2021 7:15:11 AM

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.