How to handle differences between 1099-B basis v. reality?

I am anticipating significant differences between the basis reported by the broker on the 1099-B and to the IRS v. the real basis based on my records. My concern is based on information the broker provided at the time of the sale (online information, not a 1099-B).

How should I remedy the differences?

Should I: (a) request that the broker re-issue the 1099-B; or (b) simply disregard the 1099-B and report the correct basis on Sched D?

The reason I am asking now is: if #a is preferred or required, I would like to start that process now, hoping to get the broker's internal data corrected before the 1099-B is generated (and sent to the IRS).

I say "anticipating" because I have not yet completed my calculations. But I can see some obvious disparities already.

I don't know if the net differences are in my favor or not. But I prefer to report tax data correctly, regardless of who benefits.

Reply to
qguy
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On Form 8949, in column (e) enter the basis that the broker reported to the IRS. Enter code B in column (f) and enter the adjustment in column (g).

The preceding is just a summary. See the IRS instructions for Form 8949 for more details. You can download the instructions from the following link.

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Bob Sandler

Reply to
Bob Sandler

Thanks.

Reply to
qguy

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