Zero cost basis transactions

Forum|Forum|3 years ago
March 20, 2023
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Help. Must review many zero cost basis transactions

TurboTax Premier Online

Best answer by Mike9241

in Turbotax, a cost must be assigned for every sale. if there is zero cost, for example, an option sold short that expires worthless a zero is required for the cost, not a blank. the only way that may be available to avoid reviewing all these transactions is to enter summary totals on the 8949. then you mail in a download copy of the 1099-B with form 8453. read the instructions. it should be available in Turbotax but if not

https://www.irs.gov/pub/irs-pdf/f8453.pdf

Mike9241Answer

https://www.irs.gov/pub/irs-pdf/f8453.pdf

user645427Author

Thank you Mike9241 !

This looks like a workable solution that I hope to try next year (2023 taxes). Your instructions make the process look simple. I'm concerned about the execution. These were not accidental omissions of a cost basis. I've addressed the problem the hard way in years past. This year I successfully completed the multi-step review of 294 zero basis transactions reported by Fidelity Investments in three marathon sessions. The best solution to this situation would be if Turbotax would provide a way to deal with them en mass. Surely there are others who have multiple zero cost basis transactions. Please pass along this plea to Turbotax decision makers.

nirlay

@user645427 @Mike9241

If I manually review all the entries with 0 cost basis, will TT allow me to e-file, or will it complain on final check? The option I am getting is "I don't want to make any changes to my cost basis right now" - this verbiage hewre seems to me that there will be trouble in future.