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Learning how to handle these 1099-B's, I received the detail transaction report that shows the cost or basis, however on the actual 1099-b the column 1e shows a lower amount of cost and basis. Why is that?
Example line 1 shows on the detail the totaling of $4520.49 as proceeds, with the cost of $1579.50; (gain $2940.99); (Do I do anything with the $661.50 ordinary?)
however on the 1099-B states $4520.49 as Cost and Basis as $918.00?
Why also they reporting $4550.40? is that the difference of proceeds and reporting the sale expense of $29.91? Why the Basis was $1579.50 down to $918?
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IntuitCharlene
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**Mark the post that answers your question by clicking on "Accept as solution"
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This is some sort of employee stock option. Per IRS instructions the 1099-B cost basis reported is the purchase/exercise price of the stock. The taxpayer's cost basis is then adjusted by the amount of the gain on exercise that's already been included as compensation in their W-2. So for calculating taxable gain, use the supplemental report (which includes the compensation piece of the basis.) In your example, gain would be $2,940.99.
My guess is that there was a sales commission of $29.91 which is reducing the gross sales proceeds down to the net sales proceeds reported on the 1099-B. This is correct too.
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