Frankly, I think this is a no-brainer. But I'm looking for a qualified second opinion.
Due to a basis step-up, the basis and gain/loss that was entered into Form 8949 Part II "box E checked" (not reported to the IRS) differs from the sum of those transactions in Form 1099-B that the broker sent to me.
(The broker was supposed to do that long ago, but apparently it fell through the cracks before I got involved.)
Following the "exception 2" rule, supporting statements are attached to the tax return to document the proceeds, basis and gain/loss for each transaction.
What supporting statements should be used:
1. The corresponding 1099-B statements, which do not agree with the total basis and gain/loss entered into Form 8949; or
2. My own records, which reflect the basis step-up and which agree with the total basis and gain/loss entered into Form 8949.
Note that I am only asking about supporting statements for Form 8949 Part II "box E checked" transactions (basis and gain/loss not reported to the IRS).
- posted 1 year ago