LSTAX
Level 4
06-23-2020
10:59 AM
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I made two entries on disposition screen 17.
One for the gain subject to recapture as ordinary income $3,700. It goes to the correct place 4797 II line 10.
For the second entry I used the 1099-B amounts for sales and cost so they tie to the brokerage statement. On the 8949 box E I have an adjustment to gain or loss column (g) $5,300 which is the 9,000 cumulative ajustment to basis less the $3,700 ordinary gain. This positive $5,300 results in less of a loss. The 1099-B without the adjustment would be a loss of $12,000. Now the loss is $6,700.
No need to do the math, just asking if my logic for reporting is correct.
Thanks!