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Level 3
March 1, 2021
Question

1099B basis adjustments

  • March 1, 2021
  • 1 reply
  • 14 views

When cost basis is incorrect on a 1099-B, and a basis adjustment has to be entered on the 1099B worksheet, the adjustment amount flows over to the 6251 worksheet and to line 2k of the 6251.  Why is that?  It's being treated as a tax preference item when in many cases it is not, and may result in an AMT calculation erroneously.

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1 reply

Level 2
March 5, 2021

You are indeed correct. I've just had 2 customers come up with incorrect AMT. ProSeries 2019 did not do this.  ProSeries 20 assumes any cost adjustment triggers AMT (most don't). Anyone wishing to see an illustration of this can see it here:

https://drive.google.com/file/d/1V-03vVc-qPD5M-InGvg1MxWnhSkaEq82/view?usp=sharing