Your obligation is to report the correct numbers, whether the brokerage has them correct or not. On Form 8949, you report that your brokerage said the basis is X, but the actual basis is Y because of reason Z. So you should find out why the brokerage reports what it does, but if you confirm that its number is wrong, you should correct it.Your obligation is to accurately report to IRS whatever your broker reports. Your broker will have more accurate information than you and they are required to report accurately. For your benefit, you need to make sure they are not wrong because of events such as stock split wash sale.
An example from Vanguard: I bought an ETF, then sold it four months later for a capital loss. During those four months, the ETF distributed a long-term capital gain. Under IRS rules, if you hold a share six months or less, an amount equal to the capital gain distribution must be changed from a short-term loss to a long-term loss. Vanguard didn't catch this, so the 1099-B type of gain was wrong and I corrected it.
Statistics: Posted by grabiner — Wed Aug 21, 2024 9:18 pm — Replies 4 — Views 568