Webull asset transfer messed up cost basis

[EliteZags]

so I recently used Webull's 3% taxable acct transfer promo to send my individual holdings in Vanguard to combine with those in my Webull, it took another week for them to receive and update cost basis on the transferred shares/lots, and while I haven't checked every set there's one glaring mistake

I still had some AMC shares from playing around with the meme swings in 21, I had never put in more than like 2K and got rid of most of it, but Webull is showing my total cost for 46 shares as $18,691 for a loss of (-18,494) which is obviously incorrect as I never put near that much in, seems like they may have mixed up some pre-split pricing

so question do I have any obligation to make sure this gets corrected, or if I just sell the shares and Webull actually reports is as that much capital loss which benefits my taxes is that totally on them?

[secondcor521]

so question do I have any obligation to make sure this gets corrected, or if I just sell the shares and Webull actually reports is as that much capital loss which benefits my taxes is that totally on them?

As a taxpayer, you have an obligation to report the correct basis on your tax return.  If Webull reports an incorrect basis, you should correct it with an adjustment code of B in column (f).  See the first row in the table at https://www.irs.gov/instructions/i8949#en_US_2022_publink1000286502

Also, when you submit your return, at some point you'll sign the return or electronically sign the return.  Above where you sign the return, it says "Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete."  The electronic signature stuff has similar language.  You don't get a pass just because your brokerage firm made a mistake.

You can also probably work with Webull to get the error corrected if you wish.

[EliteZags]

so you're liable for any mistakes the institution makes that you don't catch?

I mean who's actually tracking and verifying cost basis on every holding they own, to me "to the best of my knowledge" is what my institution reports

[secondcor521]

so you're liable for any mistakes the institution makes that you don't catch?

I mean who's actually tracking and verifying cost basis on every holding they own, to me "to the best of my knowledge" is what my institution reports

You're liable for any mistakes of which you are aware.  Your OP shows you're aware of Webull's mistake.

[Sibley]

What happens when you move your assets to a brokerage which doesn't have cost basis and thus doesn't have anything in that section? Do you report $0 cost basis, or do you reflect what the cost basis is from your records?

Tax fraud isn't cool. Don't do tax fraud.

[eyesonthehorizon]

If someone claimed they bought the shares when you bought the shares, for the astronomically inflated price listed here, it wouldn’t pass even a basic sniff test, would it? Half of Reddit, intellectual cream of society that they are, would know immediately it was bullshit. Even you said so, twice:

so I recently used Webull's 3% taxable acct transfer promo to send my individual holdings in Vanguard to combine with those in my Webull, it took another week for them to receive and update cost basis on the transferred shares/lots, and while I haven't checked every set there's one glaring mistake

I still had some AMC shares from playing around with the meme swings in 21, I had never put in more than like 2K and got rid of most of it, but Webull is showing my total cost for 46 shares as $18,691 for a loss of (-18,494) which is obviously incorrect as I never put near that much in, seems like they may have mixed up some pre-split pricing

so question do I have any obligation to make sure this gets corrected, or if I just sell the shares and Webull actually reports is as that much capital loss which benefits my taxes is that totally on them?

Not only would that be fraud, it would be obvious, glaring fraud because there’s no way you didn’t know better just based on the timing of the purchase. Play stupid games, win stupid prizes.

I’m used to telling people not to be too afraid of the IRS since they’re actually pretty nice about helping rectify honest mistakes, but people who commit egregious fraud & then blame it on the fault of someone else? don’t have that nice friendly experience.
 

so you're liable for any mistakes the institution makes that you don't catch?

I mean who's actually tracking and verifying cost basis on every holding they own, to me "to the best of my knowledge" is what my institution reports

Even if your CPA makes a mistake, you’re the one who signs the tax return & who is held liable for errors, omissions or false statements therein, & pretending otherwise would be the definition of criminally stupid. Don’t be stupid or a criminal. This is big boy pants stuff in which the responsibility (ethically &, yes, legally) falls squarely on you. Get in touch with your previous broker for the records for your own protection, & then alert WeBull to get it updated so there’s not a conflict.

Based on your question about who actually tracks their cost basis, I might also suggest you download your old statements while you still can. Brokerages aren’t legally obligated to keep them as long as you are.