How can I determine if the basis was reported to the IRS?

How Can I Determine If the Basis Was Reported to the IRS?

To determine if the basis of an asset was reported to the IRS, you should check the tax forms and documents provided by the seller or financial institution. The basis is typically reported on specific forms, especially when assets are sold or transferred.

Key Forms Where Basis Is Reported

Form 1099-B: This form is issued by brokers and other financial institutions to report proceeds from the sale of securities. It may include the basis (cost basis) of the asset sold. If the basis is reported, it will be listed in Box 2a or Box 2b.
Form 1099-S: Used for real estate transactions, this form may report the basis if the transaction involves a property sale. The basis is often reported in Box 2 or Box 3.
Form 1098-C: This form reports contributions to a qualified mortgage or homebuyer assistance program. While not directly reporting basis, it may be relevant for home purchase basis calculations.
Form 8949: Used to report capital gains and losses, this form requires you to enter the basis of each asset sold. If you filed this form, you reported the basis to the IRS.

How to Verify Basis Reporting

Review your Form 1099-B or Form 1099-S for basis information. If the form includes a "basis" field and it is filled in, then the basis was reported.
Check your Form 1040 and attached schedules (especially Schedule D) to see if you reported the basis in your tax return.
Use IRS.gov/Account to access your tax return transcript and verify if the basis was included in your filing.

Additional Resources

For detailed guidance on reporting basis and capital gains, refer to IRS publications:

Publication 550 – Investment Income and Expenses (covers reporting basis for investments)
Publication 551 – Basis of Property (explains how to determine and report basis)

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Disclaimer: Always verify information with official Federal or State Department of Revenue Forms and Instructions.