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Reviewed post topics back to mid January & didn't see anything posted on this yet.

Situation:

If an equity sale is reported on a 1099-B as:

Short-term transactions & basis was not reported to the IRS (8949 Box B)

but the date acquired AND cost basis is incorrect, in Part 1:

1. Do I include the info as reported on the 1099-B in columns (b)date, proceeds in (d) & (e) with the corrected basis and column (f) of codes BT & zero in (g)? And then record the correct info in Part 2? Or,

2. Since it also has a T code do I not report it in Part 1 & report all the correct info in Part 2 with the BT codes?

Or another variation that I'm not grasping?


Thanks for guidance, instructions just not sinking in...

op
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If an equity sale is reported on a 1099-B as:

Short-term transactions & basis was not reported to the IRS (8949 Box B)

but the date acquired AND cost basis is incorrect, in Part 1:

1. Do I include the info as reported on the 1099-B in columns (b)date, proceeds in (d) & (e) with the corrected basis and column (f) of codes BT & zero in (g)? And then record the correct info in Part 2? Or,

2. Since it also has a T code do I not report it in Part 1 & report all the correct info in Part 2 with the BT codes?

Or another variation that I'm not grasping?


I'm not grasping the question, in large part because I can't figure out what "it" is.

Brokerage packages usually include two parts:

1. Substutute Form 1099-B. This is the information sent to the IRS.

2. "Supplemental" information that is not sent to the IRS. This information often takes a stab at holding period and gain/loss but is not sent to the IRS.

Code B and anything reported to the IRS relating to holding period or basis are mutually exclusive. If you're dealing with a code B there is nothing to correct since nothing has been reported.

Does this help? If not, please clarify, completely without the use of pronouns.

Phil
Rule Your Retirement Home Fool
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LOL, Phil. Knew I might get called out on this somehow.

But I think I understand how to report Sales & Other Dispositions of Capital Assets on Form 8949. My (oops, damn pronouns), The it was the equity sale first mentioned.

Nevertheless, for Form 8949, the corrections to errors reported on a 1099-B for Capital Assets are only those designated for Box A (reported to the IRS).

For other "corrections" (the holding period stab) on 1099-B to Capital Assets reported for Box B or C (Supplemental Information, not reported to the IRS) to be recorded on Form 8949, ignore the 1099 errors and report the correct Cost Basis information on Form 8949 that your documentation (statements, confirms, etc) supports in Part 1 or Part 2 as appropriate.

Do I have the interpretations right now, or do I feel another (harder) ruler smack coming? :)

Thanks again,

op
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Nevertheless, for Form 8949, the corrections to errors reported on a 1099-B for Capital Assets are only those designated for Box A (reported to the IRS).

For other "corrections" (the holding period stab) on 1099-B to Capital Assets reported for Box B or C (Supplemental Information, not reported to the IRS) to be recorded on Form 8949, ignore the 1099 errors and report the correct Cost Basis information on Form 8949 that your documentation (statements, confirms, etc) supports in Part 1 or Part 2 as appropriate.

Do I have the interpretations right now


Chew got it.

Phil
Rule Your Retirement Home Fool
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