Suggested method for data input

Forum|Forum|4 years ago
March 3, 2022
1 reply
1 view

We have a stock that was inherited years ago. We have carefully kept track of basis and associated cost parameters.

It was sold last year and the 1099-B from the Broker showed a cost basis of $0.00. I have replaced that value with the appropriate cost as I entered the data into TT.

What is the suggestion to make sure that this does not raise a flag with the IRS?

MaryK4

Level 15

If the 1099-B has a cost basis of zero, you do not want to enter something different. Instead check the box for "The cost basis is incorrect or missing on my 1099‑B.". Then you can enter the correct basis as below. Regardless, be sure to keep the information with your tax for at least three years in case you are audited.

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Bain999Author

Level 2

Thanks for the answer but I am more confused.

You said "Instead check the box for "The cost basis is incorrect or missing on my 1099‑B."."

Well I have combed through the interview and did not find where I could find any option for an incorrect basis.

I must be missing something.

ThomasM125

Level 15

Depending on what version of TurboTax you are using, you should see a screen that says Select any less common adjustments that apply after you enter your investment sale information. One option is to indicate that the cost basis is wrong, as follows: