Widely Held Fixed Investment Trust (WHFIT)

Forum|Forum|5 years ago
April 12, 2021
2 replies
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I bought and sold GLD in 2020.
1. in 1099B there a line for both transactions, as I expected.
2. in 1099B there is an additional transaction that has confused me.
The quantity is 0 but there is a value under the Proceed column and a value for "cost basis factor" under the Additional Information column.
3. There is an item in the "Fee and Expenses" for GLD showing the negative value of the proceed of the entry in 2.

1099B says GLD is a "widely held fixed investment trust (WHFIT)" security (note No. 15). in TT, this one has a "needs review" button and the only values are under the columns Date and Proceed. As 1099B says, I need to use the given "Cost Basis Factor" to calculate the cost basis for this transaction. According to note No.16 in the 1099B form,

[cost basis allocation factor] = [ value of the assets sold ] / [ total net asset of the trust]

I need to know, how do I get [ the total net asset of the trust].

I appreciate any help.

TurboTax Premier Online

Best answer by fanfare

that's the value of your holdings on the date the confusing transaction occurred

fanfareAnswer

Level 15

that's the value of your holdings on the date the confusing transaction occurred

ZagrosAuthor

Level 2

I got it; I think. I found the closing price of the GLD on the date of the confusing transaction. That gives me the value of my holding on that date. Dividing the proceed value to my holding gives the cost basis factor. This is very close to the given factor in 1099B. Thank you for your response.

In TT, there is a "needs review" button for that transaction, the only way to get rid of the button is to enter a value for the cost basis. I entered zero and TT accepted that, but that is not correct; is it? I did the following to calculate the cost basis for this transaction:

[Total Net Asset of the Trust] = [Proceed] / [Cost Basis Factor]
[Cost Basis] = [Total Net Asset of the Trust] / [No. of Shares Bought]

I appreciate your input.

fanfare

Level 15

Because the fee is relatively small your cost basis could be less than 50 cents or negligible, which rounds to zero.

If the fee is less than 50 cents you can drop those transactions from your return.

wistful

Level 3

If you know the original cost, note 16 says you can multiply it by the cost basis factor to get the cost basis, then subtracting this from original cost would give the adjusted cost basis for the next transaction etc. but wouldn't this differ from the amount using the total net assets of the fund because the total could have doubled e.g. since purchase?

Help!

RobertB4444

Level 15

@wistful If you buy one share of stock for a dollar and then it splits the basis is $0.50.

If you sell one share and use one dollar for the basis on that sale then the basis on the remaining share is zero.

So you are going to multiply the basis by the percentage of shares that you sold in this transaction. If it doubled you should make sure that the percentage of shares that you have keeps that in mind.

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wistful

Level 3

I am really struggling with GLD although the amount involved is relatively small. I bought 3 same-size lots of GLD in '21. (In different months) I calculated the cost basis for each monthly disbursement. I sold my 1st lot, bought in Jan, in Dec carefully calculating the amended cost basis of that lot. Alas TT is adding the cost basis of the other 2 lots and subtracting that from my sale cost basis. Is it possible to force TT to accept my numbers? Or am I doing something completely wrong?