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Level 3
posted Feb 2, 2025 8:30:32 AM

Is it acceptable to manually split up transactions on 1099-B (ISO/RSU sale)?

For examples sake, say I had 8000 shares of a stock. 7000 were exercised ISOs, the other 1000 were RSUs I had held. I had held onto these 8000 shares for a number of years, until I sold them recently. The 1099-B from my broker lists the entire sale as one transaction under "Long Term Transactions for Noncovered Tax Lots".

 

I need to adjust my cost basis as it is not correct on the 1099-B. I believe the process for adjusting is different for ISOs and RSUs. So my question is, will it raise red flags if under "Sales" in TurboTax, I split these into two different transactions, still equaling 8000 total shares (as reflected on my 1099-B)?

0 1 2058
1 Replies
Expert Alumni
Feb 6, 2025 11:44:43 AM

No, the IRS will look at your total proceeds and compare it to the total proceeds they receive on tax forms. As long as the proceeds all match, you are fine.