TaxBit allows you to make the decision on how you’d like to go about reporting your transactions with missing cost basis. You’ll have the opportunity to include any missing cost basis disposals with $0 cost basis reported.
What are my options?
You have three options for generating your 8949 with missing cost basis transactions in your account:
1. Resolving Missing Cost Basis:
- If you have transactions in the Resolution Center you’ll want to work on resolving those issues
- Any remaining missing cost basis flags that can’t be resolved directly in the Resolution Center can still be worked through by taking a look at our other resources
2. Download your 8949 with missing cost basis transactions:
- This can cause an increase in your tax liability
- It provides a more complete report to the IRS
- Approach is considered to be conservative
- You are less likely to be audited
3. Download your 8949 excluding any missing cost basis transactions:
- This can result in lower tax liability
- It’s provides a less complete report to the IRS
- Approach is considered to be aggressive
- You are more likely to be audited if the source of your missing cost basis transactions reports disposals on their end to the IRS
What if I am only missing some of the cost basis on a transaction?
If you choose to download your 8949 with missing cost basis transactions that have established partial cost basis, the remaining cost basis that is missing would have a $0 cost basis reported.
If you decide to download your 8949 excluding any missing cost basis transactions, the transactions that have established a partial cost basis will still be included on your 8949. The missing amount is what will be excluded.
What impact does my decision have on my account?
Resolving your missing cost basis transactions prior to generating your 8949 will provide you with the most accurate results.
If you choose the option to download your 8949 with missing cost basis transactions, it will not impact the data that is in your TaxBit account. This means, the gain/loss numbers displayed in your TaxBit account will not match your generated tax forms. The forms generated will include disposals that are not currently being included in those results
Generating your 8949
When you’re ready to download your 8949, follow this guide HERE. When you’re following the steps to generate your form, you’ll see a pop up that says “Transactions with Missing Cost Basis”. That’s where you choose between the two options:
- Omit MCB Transactions: to exclude your missing cost basis transactions from your 8949.
Print with $0 CB: to include the transactions with missing cost basis on your 8949 and reporting the cost basis as $0
- Please Note: If you select one of these options your forms will be generated with no acquisition dates on affected transactions. You will need to manually enter a date before your form can be used for import or filing.
Once you've downloaded your 8949, you’re all set and ready to file your taxes!
Still have questions? You can interact with our Chatbot by selecting the Chat Widget located at the bottom right side of your screen, or fill out this form HERE to submit a support inquiry request. Our team is happy to help!
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