[USA] Form 8949 - KRAKEN 1099-DA reports 7% less "proceeds" than Cointracking report. AI suggests to use "Kraken 1099 proceeds", and in column "g" enter the adjustment to make it match your actual P/L. Sound right?
Filling out the 1 line summary of all transactions on From 8949, google says the irs checking engine wants to see "proceeds" match the 1099-DA issued by the exchange. So use that figure for "proceeds" column.
One hopes it will know to add the short term and long term side and only check the sum total of both, since the individual sums are not going to be accurate if you did any transfers.
Next, use your actual cost basis and actual P/L figures.
Then, in column (f) use "B" for "basis correction", and enter the correction amount in column (g).
Where "correction amount" in (g) is the difference between your actual proceeds vs Kraken's 1099 reported proceeds.
So if your proceeds are $12k and your 1099 only shows $10k, your column (g) adjustment is $2k.
Just so long as P/L = (Proceeds - Basis) +/- adjustment (g).
This however opens up another question. E.g. with HR Block offices you must enter "M" in column (f) in order to unlock the "attachment upload" option for multi-page 8949 uploads. My agent couldn't get it to upload without entering that first (a couple of years ago anyway). So if you use "B" in column (g), I wonder if it will still prompt for an upload of full transaction list.
Is this the correct way to report on the 8949 Summary line?
It is done once for each exchange on the long term and short term transactions summary page.
And is there some way to explain this adjustment in (g) on the tax return so they understand what they are looking at? Thanks!