What code is used in form 8949 column (f) for the adjustment put in column (g) that my exercised stock options capital gain were transferred as ordinary income?

[justquinn16]

How do you figure out adjustments on form 8949 columns (f) & (g)?

[GeorgeM777]

We need you to provide additional information regarding your tax situation.  For most transactions,  columns (f) and (g) will not need any entries.  You may need to complete columns (f) and (g) if you got a Form 1099-B or 1099-S (or substitute statement) that is incorrect, if you are excluding or postponing a capital gain, if you have a wash sale, or in certain other situations.  

Was your capital gain incorrectly reported to you as ordinary income?  If that is the case, you should request that the entity that reported the transaction to you issue a corrected form.  The link below will take you to the IRS publication that explains each of the codes for column (f).  

How to Complete Form 8949, Columns (f) and (g)

@justquinn16

[justquinn16]

Thanks. Got 1099-B showing stock option buy / sell  simultaneously with a capital gain.  This is what will be reported to IRS with gross proceeds, cost basis and that capital gain.  However, because it’s a short term gain, this gain was immediately transferred to my company as ordinary income and included in a payroll check with all taxes taken out.  

A 1099 Supplement was included with the 1099-B showing the adjustment of that gain being removed to zero it out since I already got taxed on the gain.  This supplement is not reported to IRS so I have to make the adjustment in column g to remove that gain (believe it will be the negative of the gain amount?).  I then don’t know the code to use in column f (since the gain is actually incorrect then thing “B”?). 

[justquinn16]

“think” B would be the code?

[GeorgeM777]

Yes, it appears you need to make an adjustment to the basis that was initially reported.  B is the correct code if the basis reflected on your Form 1099-B--box 1e is incorrect.   

It appears you are trying to show, through the adjustment entered in columns (f) and (g), that your basis and gross proceeds are the same so that there is no gain or loss.  In that case, code B appears to be the correct code.  

@justquinn16

[Birddog3]

For a long-term uncovered sell, I entered $0 for the cost basis per 1099-B box 1e and I also selected, "The cost basis is incorrect or missing on my 1099-B".  It allowed me to adjust the cost basis to the correct amount thru "I found my cost basis". I entered the correct cost basis of the RSU on the line "Cost Basis or adjusted cost basis". However, when I reviewed the 8949 form, column (e) has the adjusted cost basis but column (g) has $0.  Column (f) has "B" which I believe indicates Basis adjusted. Why is column (g) at $0 not the adjusted amount that I entered?  Column (h) has the correct Gain.  

In schedule D, it's not correct either as Part II Long-Term column (g) adjustment = $0. Column (e) has the adjusted Cost Basis. All other fields are correct and it has the correct amount of Gain.

I'm using 2023 Home & Business downloaded SW.

[fanfare]

For non-covered securities ( Box B or E) showing zero (wrong) basis, enter the correct basis yourself.
Use code "B" and put -0- in col (g).
For Box A or D, leave basis as reported, use Code B and put an adjustment in col(g).

If the basis is not reported to IRS, there's nothing to adjust.

@Birddog3 

[robertmcelroy]

I need to put amounts in Column G of Form 8949 Part II.  Where in the step by step process are these amount input?

[DavidD66]

In the step by step process for stock sales (1099-B entry) there is a screen where you indicate that your cost basis is incorrect.  You then enter the correct cost basis and TurboTax does the rest.   If you imported your 1099-B you might need to delete the transaction and enter it manually in order to make the adjustment.