Author Topic: tax: fixing an incorrect tax-basis on a 1099-B  (Read 2474 times)

mamem

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tax: fixing an incorrect tax-basis on a 1099-B
« on: February 16, 2015, 07:11:27 PM »
Hi all,
   I've got a small (hopefully!) tax issue that I'm hoping someone here can offer some advice on.  Back in 2013 I transferred about $20k of shares into my Etrade account.  I sold these shares last year, and received a 2014 1099-B from etrade for it.  The 1099-B has an incorrect tax basis listed - they're listed with a basis of $0. The correct cost basis should actually have been very close to what I sold them for - so I'm really eager to correct this to avoid paying $6k or so in tax on negligible gain.

I tried calling etrade to resolve this, and was told that they wouldn't/couldn't issue a new 1099-B for me, and that I should just tell my accountant about it.  I handle my taxes myself, and am using tax-act.  Any advice on how to go about fixing this?

Thanks,
mamem

geekette

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Re: tax: fixing an incorrect tax-basis on a 1099-B
« Reply #1 on: February 16, 2015, 07:51:25 PM »
Yeah, there's some law now about brokerages not being able to adjust the basis.  Not sure if it's what applies to transfers, but certainly they caused me some hair pulling with stock purchase plan and options stuff.  Turbotax walked me through the adjustments, so it seems tax act should too.  There was just a spot where it asked if the basis was correct. Answer no and adjust.

Not confidence inspiring, but I had a W2 that included the basis for the options, and wasn't about to pay double either!

MDM

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Re: tax: fixing an incorrect tax-basis on a 1099-B
« Reply #2 on: February 16, 2015, 09:49:44 PM »
We're trying both TT and TA this year to see if a switch to TA would be good.  So far this is one area where TT seems a little more helpful, although TT has a bug in this area they claim will be fixed by Feb. 19.

See also http://forum.mrmoneymustache.com/investor-alley/your-2014-1099-b-form-for-an-espp-sale-will-probably-be-wrong/ for related discussion.