dtax1
Level 1
‎05-20-2025 08:27 PM

A client received 1099-B for which the cost basis is not reported to the IRS. However, it shows the cost basis on the form with code (e) next to it. 

How do I calculate and report the adjusted cost basis to ensure that the ordinary income reported in W-2 which already includes the income from the RSU's is not double taxed by reporting it on Schedule D

 

Thanks in advance.

 

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Terry53029
Level 15
Level 15
‎05-21-2025 09:18 AM

If your client is selling shares that became vested in 2024 then his W2 usually has the amount that was included in his income in box 14 which would be his basis. if he is selling shares that was vested in prior years he should get his basis from his company other wise he will probably over pay his capital gains 

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Jim-from-Ohio
Level 12
Level 12
‎05-21-2025 10:50 AM

often going deeper into the 1099 shows the adjusted cost basis

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qbteachmt
Level 15
‎05-22-2025 01:39 PM

"with code (e) next to it"

That's telling you this wasn't reported to the IRS, and you would confirm the basis to report from some other source. It won't be double-taxed, because you'll be providing a basis to the IRS now.

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