Level 11
12-06-2019
05:00 PM
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Basis isn't a tax return item. You calculate beginning basis as if all prior returns had been prepared correctly (which might mean that losses would have been allowed in those prior years, so current year basis is still starting from zero), with the caveat that double-dipping isn't permissible. No amendments required in order to correct beginning basis in the current year. You could disclose on an 8275 if you were so inclined.