When entering manual corrections to 1099-B with errors, how do enter a gain instead of a loss when there is no choice to do so

[olwi00]

When entering manual corrections to 1099-B with errors, how do enter a gain instead of a loss when there is no choice to do so?  You only have the choice to change Disallowed Wash Sales, but no way to enter a gain.

[rjs]

You do not enter the gain or loss. You enter the proceeds and the basis, then TurboTax calculates the gain or loss.

[olwi00]

No, you don't enter the Proceeds & Sales when they are WRONG.  It's clear you don't know how to make corrections by editing under "Investment Income - 1099-B or broker statements" and choosing EDIT and look for the entries that are errant.

[olwi00]

No one answers this question, as they even understand the question!  In response to an email, "Did you get the answer you needed" - the answer is NO.

[baldietax]

can you explain further what "errors" on your 1099B are you having to correct for?

[DawnC]

There is a box you can check to adjust the basis, but you don't directly enter the gain or loss number from the 1099-B.    TurboTax calculates it based on your entries in those fields.  

[olwi00]

There are NO Wash Sales on GAINS.  So, if the brokerage puts in a figure for a Disallowed Wash Sale, I changed the Wash Sale to -ZERO-

Is that not correct?  I've had Turbotax CPA's tell me THAT is how you do it, rather than change your Cost Basis.

I'm making the changes from calculating the difference between Cost & Proceeds from an Excel Spreadsheet the brokerage provided.

As the spreadsheet has somewhat different Cost Basis & Proceeds, that is how they said to do so.

WHAT'S MISSING HERE FROM REPLIES:  When there is a Gain, there is no box to place a Gain in; only a box to delete the Wash Sale.  So, my correction removes the erroneous Disallowed Loss, there is no place to enter the Gain.

[baldietax]

brokerages don't usually get this reporting wrong and make the appropriate cost basis adjustments.  What level of detail are you looking at in the 1099B - you can have a wash sale on a position sold for a net gain, but on the underlying detailed tax lots some can have losses considered as wash sales that are disallowed and the cost basis has already been adjusted on other lots.

you keep referring to "entering a gain".  you enter proceeds and cost basis, and adjustments for wash sales, AMD etc.  TT and Form 8949 calculate the gain/loss accordingly.  If the brokerage did make errors and you're having to calculate this offline for some reason, you should have all the fields you need.  The screens are slightly different if you are entering it as Sales Summary vs. One by One.

[fanfare]

Simply put, Col (h) Gain or (loss), is a calculated field. 

[Mike9241]

if this is a transaction where the proceeds and tax basis are reported to the IRS (types A and D) and that is what was entered, why is the gain/loss wrong?  if the proceeds are wrong this creates a problem for you because of IRS matching, best would be to contact the broker to correct this.  if tax basis is wrong use the adjustment column and the enter an adjustment code from 8949 instructions.

if the wash sale amount is incorrect here's what the form 8949 instructions say

. If you received a Form 1099-B
(or substitute statement) and the amount of nondeductible
wash sale loss shown in box 1g is incorrect, enter the
correct amount of the nondeductible loss as a positive
number in column (g). If the amount of the nondeductible
loss is less than the amount shown on Form 1099-B (or
substitute statement), attach a statement explaining the
difference. If no part of the loss is a nondeductible loss from
a wash sale transaction, enter -0- in column

types B and E - proceeds but not tax basis reported to the IRS should be handled the same way. However, since the IRS does not get cost basis you could short cut it by changing the tax basis. 

type C and F neither proceeds nor cost reported to the iRS you could just enter the correct proceeds and tax basis. 

[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).
-
check the box indicating you have other boxes on your 1099-B to enter.

TurboTax will  follow the rules.

[olwi00]

No one seems to understand the following:

(1)  My 1099-B is WRONG & the brokerage REFUSES to reissue it, with the excuses "The 1099-B is correct; this case is closed; no further documents will be provided"

(2)  This is after SIX CPA's & EA's looked at it AND looked at the Excel Spreadsheet from the Brokerage, which was their supposed "detail" that was lacking in the 1099B.  BUT, the Spreadsheet is extremely errant & makes no sense, with line after line of MULTIPLE ENTRIES of the same Proceeds & Cost Basis figures repeated multiple times, with Disallowed Wash Sales also repeated, even though the Proceeds are HIGHER than the Cost Bases.  IN ADDITION, both Proceeds & Cost Basis have DIFFERENT figures than the 1099-B!

(3)  The CPA's & EA's, who spent HOURS looking at both the 1099-B & Excel Spreadsheet, said that both "documents" are impossible to make corrections on, because of the duplicated Excel lines & the different Cost Basis & Proceeds they show from the 1099-B.  They all said that the BROKERAGE needs to, & has the legal obligation to, spend whatever time ON THE PHONE with me until this is all corrected.  The problem is, as I mentioned earlier, the Brokerage REFUSES to do anything whatsoever.  I don't believe they EVEN LOOKED &  examined their completely erroneous Excel sheets (several version were provided).  How can I make figure corrections when the figures are different on the Excel Workbooks from the 1099-B's?  They also told me that IRS rules mandate Brokerages to list EVERY LOT OF EVERY BUY & SELL - no VARIOUS permitted in their reporting.

(4)  Mike9241 says: "Forget correcting the Cost Basis - the IRS only looks at the Proceeds".  That doesn't provide a solution even if it were correct, as to make changes on Desktop Premier, you go to Investment Income; individually choose each manual correction, Turbotax asks for both the Cost & Proceeds.  When they are different on BOTH the 1099-B & the Excel Spreadsheet - how can you use figures from one or the other when they are not the same?

I've wracked my brain for HUNDREDS of HOURS, trying to make correction, but when the IRS sees Proceeds & Cost Bases different than reported on the 1099-B, they will audit it, & ask me to defend my numbers.  What defense do I have when the numbers are different on both?

Further, the brokerage can dismiss me as a client whenever they wish, with no reason, & then I'd really be screwed. 

Please help me. 

[olwi00]

Dawn,

Read my latest post before this one to you.  It will explain how I DO NOT KNOW my Cost Basis, as my 1099-B is errant, & the Excel Spreadsheet Webull provided has DIFFERENT Cost & Proceeds than the 1099-B.  

Plus, the  Excel Spreadsheet has MULTIPLE LINES of Repeated figures & repeated Losses on the SAME SALE.

It is a total mess that SIX CPA's & EA's & Tax Experts with 20 years experience in doing taxes who haven't taken the EA test - NONE of them can make any sense of the Excel Spreadsheet nor the 1099-B.

They tell me to go back to my Webull brokerage, when Webull has refused to let me speak to their Tax Team, & has repeatedly refused discussing these issues, nor providing a corrected 1099-B.

I'm being backed into a corner where I can't find anyway to file my taxes, as I have nothing but conflicting figures, AGAIN with the Excel Spreadsheet having MULTIPLE LINES of Repeated figures & repeated Losses on the SAME SALE.

[fanfare]

spreadsheets from the broker or other sources do not matter unless

a) the data is presented in the manner and the form of Form 8949 and

b) you intend to attach the spreadsheet as a substitute document in place of Form 8949 in those cases where details are required by IRS.

--

Detail Reporting Exception: if you summarize Category A or Category D, Form 8949 is not needed for transactions without adjustments. No mailing is necessary. No attachment is necessary.

As an active investor, be aware that your category Box A or Box D sales without adjustments do not require Form 8949, so there is no reason to import or key in those transactions.
Instead use the "enter a summary" option to put your numbers on Schedule D Line 1a or Line 8a.
No mailing is necessary.

--

if you summarize the other categories, IRS requires details on some other Form 8949 or substitute document.

You are expected to keep your own accurate trading records that will give the basis and proceeds of your trades.

--

Note: the brokers requirements for reporting to IRS may differ significantly from the investor's requirements for reporting to IRS.

--

If you are reporting crypto, you can prepare your own spreadsheet 

--

If you can't come up with a corrected basis, 

a) use the broker's basis or

b) use zero as the basis.,

See my comment above for how to enter a corrected basis.

--

after consulting with so many "experts", it is time to

a) use your own judgement. OR

b) find another tax preparer schooled in this area and who knows what they're doing. AND

c) move your trading to another larger broker like Fidelity, Schwab or Vanguard that can report to IRS correctly

@olwi00 

So, what Categories are you reporting?

[baldietax]

so, what solution you are hoping for here?  This forum is best efforts and I think everyone on this thread, both paid and unpaid to be here, would love to help you resolve this issue and get filed, but it's unclear how if the issue is still the data we cannot see.

What sort of magnitude are you talking about in terms of number of sales, proceeds/cost/gain and difference vs. the brokerage 1099B?

Are you able to share more details, example screen shots etc?

Sounds like the Excel is bad.  Do you not have your own original transaction information from the buys and sells, trade confirmations etc to determine the original cost basis and proceeds and associated gain/loss.  Why has this become complicated - there can be issues with long-dated positions or account transfers where this information has been lost over time, corporate actions etc.

as for "Further, the brokerage can dismiss me as a client whenever they wish, with no reason, & then I'd really be screwed. " - they don't seem to be helping so if I had this experience I would run a mile.