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Financial Planning / Tax Strategies
|Subject: Re: 1099B cost/proceeds does not reflect options||Date: 3/20/2013 11:55 AM|
|Author: daver4470||Number: 118086 of 121594|
You can report a number different from the 1099-B on your return -- in fact, if the 1099-B number is wrong, you're required to fix it on the return.
On the Form 8949, there's a column labeled "Adjustment, if any, to gain or loss". If the 1099-B number is incorrect, you put the code "B" in the first column, and an adjustment in the second column to adjust the basis to the correct number. So, for example, if the 1099-B reported $100 as your basis, and your put was at $110, which is what you actually paid for the stock, you'd put "B" in as the code, and "$10" as the adjustment, which would adjust the basis from $100 to $110. Then, you'd report the gain/loss in the final column based on the correct $110 basis.
Make sure that in your records you keep proof of the correct basis, i.e. the transaction record showing the counterparty exercising the put at the price you're claiming as your basis.
Hope this helps!
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