Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next
Author: daver4470 One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121061  
Subject: Re: 1099B cost/proceeds does not reflect options Date: 3/20/2013 11:55 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 2
Bubba --

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!

-Dave
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement