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Level 3
posted Apr 14, 2022 9:59:02 AM

Non covered cost basis not reported to IRS - 1099B

This example is particularly to SLV (silver ETF), although it says not reported, but in the 1099B, there is a number in cost basis (col 1e) a shown below.

However, I understand there is a sale to cover the fee.

 

questions:

1. why the broker has a number for me but NOT for the IRS? (non covered)

2. do i need to enter adjustment to cost basis? 

3. if yes, where?

 

 

thanks

 

0 3 3053
1 Best answer
Level 15
Apr 14, 2022 2:46:13 PM

A non covered security was bought before the IRS mandated providing cost basis. So those securities do not have to have a cost basis reported to the IRS but the information, if available, is reported to the tax payer. 

3 Replies
Level 15
Apr 14, 2022 10:01:18 AM

You don’t have to change anything. Report what is on your form. 

Level 3
Apr 14, 2022 1:07:27 PM

any tax law information saying fidelity calculate that or certain broker prepare it on behalf of the investors? why is it then NOT sent /reported to IRS?

Level 15
Apr 14, 2022 2:46:13 PM

A non covered security was bought before the IRS mandated providing cost basis. So those securities do not have to have a cost basis reported to the IRS but the information, if available, is reported to the tax payer.