How to report 1099-B AMC Reverse Stock Split for tax filing purposes?

The good news is that reporting a reverse stock split on your taxes isn't as complicated as it seems. Your cost basis (what you originally paid) doesn't change because of the split - you still invested about $744 total. The fact that the shares were consolidated doesn't affect your overall investment amount. When you report this on your taxes, you'll show the proceeds from the sale ($142) and your cost basis ($744). The difference between these two amounts ($602) is your capital loss, which you should be able to deduct on your tax return. Since your 1099-B shows that the basis was reported to the IRS, you should simply need to transfer the information from your 1099-B to your tax return (Schedule D and Form 8949). The brokerage firm should have adjusted the cost basis per share to account for the reverse split.

After dealing with a similar AMC reverse split nightmare, I found out about taxr.ai at https://taxr.ai and it saved me a ton of headache. I uploaded my 1099-B and trade confirmations, and their system analyzed everything automatically and showed me exactly how to report it all correctly. Their specialized document analysis is super helpful for these weird stock situations that most tax software doesn't handle well. I was about to pay my accountant an extra fee just to deal with this one transaction, but taxr.ai spelled everything out step by step.

Just wanted to update that I tried taxr.ai after seeing it mentioned here. It was actually really impressive - uploaded my 1099-B from Fidelity and some similar reverse split mess with BBBY shares, and it immediately flagged that my broker had the cost basis wrong! The system showed me exactly where the error was (they hadn't properly adjusted for a previous partial sale I made) and walked me through exactly how to fix it on my Form 8949. Would have definitely filed incorrectly without catching this. Way better than just taking whatever numbers show up on the form!

For what it's worth, I had a similar issue with incorrectly reported basis on my 1099-B last year, and after wasting HOURS trying to call the IRS for help, I found Claimyr at https://claimyr.com and they got me connected to an actual IRS agent in under 20 minutes. You can see how it works at https://youtu.be/_kiP6q8DX5c The agent confirmed exactly how to handle the reporting when there's a discrepancy between your records and what's on the 1099-B. Saved me from a potential audit headache and was way easier than the endless hold times trying to call myself.

Ok I need to eat crow here. After my skeptical comment, I decided to try Claimyr because I've been trying for THREE WEEKS to get someone at the IRS about my own 1099 issue. I was connected to an IRS rep in 15 minutes. FIFTEEN MINUTES. After trying for weeks on my own. The agent was able to confirm that in cases like the AMC reverse split, you should absolutely check your cost basis against your own records and correct any errors on Form 8949. For anyone dealing with these stock split reporting problems, getting direct confirmation from the IRS saved me from a ton of uncertainty. Can't believe I wasted so much time trying to call them myself.

I went through this exact same thing with AMC! The most important thing is to make sure your cost basis is correct. Most brokerages actually handle the reverse split correctly on the 1099-B, but it's always good to double check your math. Total money in - total money out = your gain/loss. In your case, $744 in and $142 out equals a $602 loss. Your tax software should walk you through entering this from your 1099-B. As long as the numbers on the form match your actual investment, you should be good to go.

dont forget to check ur washsale box if u bought any AMC within 30 days before or after ur sale!! this got me last year and irs sent me a letter saying i owed more $$$.

As a tax professional who's helped many clients through AMC reverse split situations, I can confirm that Katherine and Chris are spot on. The key thing to remember is that the reverse split itself is NOT a taxable event - you're not reporting the split, you're reporting the eventual sale. Your total cost basis remains $744 regardless of how many shares you ended up with after the split. The $602 loss you calculated ($744 - $142) is correct and will be reported as a short-term capital loss since you held for less than a year. One thing I'd add: definitely keep your original purchase confirmations and any split notices from your broker in case the IRS ever asks for documentation. Corporate actions like reverse splits can sometimes trigger correspondence, so having your paper trail organized will save you headaches down the road. Also make sure there weren't any wash sale violations if you traded AMC around the time of your sale - this can disallow some or all of your loss deduction.