NUA Cost Basis Difference with Broker

I have read the article (https://irahelp.com/comment/61569#comment-61569) concerning NUA stock cost basis and have the following question.

Pre-tax $1,200,000
After tax $22,000

NUA stock $500,000 (1099R box 1), cost basis of $45,000 (1099R box 2), and NUA $455,000 (1099R box 6)
In 2017, we had a single distribution (older than 60) from our qualified fund. Pre-tax funds were rolled over to IRA rollover accounts, after tax balances to ROTH, and company NUA stock to after tax brokerage account. A total of 2,551 company shares were distributed. The NUA event and pre-tax / after tax were reported on a separate 1099s. After the distribution of company stock, all company stock dividends were paid in cash as to not distort or mix with the NUA company stock cost basis.

In 2019, we sold 200 shares of the company stock. I have calculated the cost basis as $17.64 per share. The broker has reported the cost basis as $.07. Which calculation is correct? If my calculation is correct, the adjustment to the cost basis would be done on tax form 8949? Do I have recourse to have the broker change the cost basis?

Thank you.



I agree with your figure, and it is not clear how the broker came up with their number. Just make the adjustment in Part II of Form 8949.

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