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Financial Planning / Tax Strategies


Subject:  Re: Exchange rates and cost basis of foreign sto Date:  3/3/2014  11:02 AM
Author:  ptheland Number:  120329 of 131768

So - going with the assumption that this is due to exchange rates - which of the methods I suggested (or perhaps a completely different) one, do you suggest that I use?


My working assumption is that brokers know more about 1099B reporting than I do. They prepare 10s or 100s of thousands of them each year. I prepare exactly none. (I use a lot of them for preparing returns, but don't prepare any myself.) So I'm rather hesitant to say they are wrong. That doesn't mean they aren't wrong, but I'd need to know a lot more about the correct way to report transactions denominated in foreign currencies before trying to suggest changes to their 1099B.

However, if I were to want to report different amounts than were on the 1099B, the correct way to do that is to report the 1099B numbers on Form 8949 (where each transaction is initially reported), report your calculated cost basis, and than use one of the adjustment codes to adjust the sale price to your calculated amount.

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