For example:
On my 1099-B form:
Proceeds = $105.15 Cost = $845.59 Loss = $740.43
When turbotax filled the tax forms, it rounded Proceeds = $105, Cost=$846, so that Loss = $741
But technically speaking, we cannot round the actual loss $740.43 to $741.
It's following IRS rules for rounding. less than 49 cents down to the next whole dollar 50 cents or more up to the next whole dollar.
gain or loss is calculated from procceds and cost so that is not changeable unles you were to emter whole $ amounts for proceeds and cost such as $105 and $845
It's following IRS rules for rounding. less than 49 cents down to the next whole dollar 50 cents or more up to the next whole dollar.
gain or loss is calculated from procceds and cost so that is not changeable unles you were to emter whole $ amounts for proceeds and cost such as $105 and $845
I am sorry, there was a typo in my original question.
The Cost should be Cost = $845.59 (not $845.99）
$845.59 would be rounded up to $846. The sale amount is rounded down to $105. The gain then would be $741, so the answer in TurboTax would be correct, using the IRS rules as mentioned by @Mike9241
In my case TT rounded 1237.57 to 1236 ? How could that be right?
see attached:
What you are showing here is a summary of transactions made and the rounding results of the summary transactions. TurboTax is applying the IRS convention and is rounding off each "Sold" and "Bought" number individually. The Gain/loss is then the difference of the rounded numbers.
This is the correct method. The IRS will know that this is due to rounding.