I posted a message regarding my 1099-B just minutes ago, but noticed I described the situation incorrectly.
Here is the situation, and my question. (I've changed the dollar amounts for simplicity).
I sold a stock of total worth $1 last year. My on-line broker charged me $5 commission. So essentially, my proceeds was negative $4.
Typically, I've noticed that on a 1099-B, the proceeds will be calculated as the total sale amount, minus commissions.
But for some reason, in this case, the broker said my proceeds (Box 2) for the sale was positive $1.
If Box 2 as reported by the broker to the IRS does not match the amount of proceeds I report, does it raise a red flag?
Which should I do?
1) Report my proceeds as ZERO, then add $4 to my cost basis
2) Report my proceeds as $1, then add $5 to my cost basis
3) It doesn't matter. The IRS doesn't check if Box 2 matches my proceeds, they just care that I calculated the amount of my loss correctly.