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I sold a small number of Warner brothers stock that spun off AT&T this year. I posted a question in another Forum as to how to calculate the cost basis. Because the AT&T was gifted to me 30+ years ago , it seemed easier just to put a zero in the cost basis when prompted during the interview and just pay the tax on the $200 payment I received from the sale .
I was able to import the 1099B information from computershare.
It brought in exactly what I see on the paper 1099B. My question is since I sold 18 shares all at once, why does the 1099B break the sale up into 2 rows?
the broker has no tax basis or other info for the 9 shares code X
so I would use $0 cost - trying to be practical based on the $$$ involved. You won't get any argument from the IRS
On the form row one has the following information. Applicable checkbox on form 8949 has an X. Under description it says 9 of 18 shares sold. There is no date aquired. Under date sold is the date I sod them. Proceeds is $105. The check if noncovered security has an X.
Row 2 has a D under the applicable check box on Form 8949. It again says 9 of 18 shares sold under description. It again has the same date of sale as row 1. Proceeds is $95. Cost basis is $286.
Type of gain or loss is Long Term. Finally there is an x under check if basis reported to irs.
Code D tells the taxpayer and IRS both proceeds and tax basis reported to IRS on long term hiooldings. I would use what they gave you for cost.
the only strange thing is that the total proceeds are $200 but not split 50/50 since the same number of shares was sold in each lot.
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