@Matilda wrote:
So I need to split the mutual fund into separate entries. One for the original inherited shares, then one for each of the times they reinvested and bought more shares for me. (every time the basis is different)
That is correct and it can get complicated or a lot of work and there is really no simple way to handle a situation such as your situation.
Brokerage firms will make the adjustment (if they know) upon death (i.e., marked to FMV on the date of death) and then the shares renivested (which are the result of fund distributions) are "covered shares" and the reported figures should be accurate on the 1099-B. If the firm did not make the adjustment for the date of death, then the total will most likely not be accuate.
