I am having the same problem. I received a 1099-R and a 1099-B from a life insurance contract that I invested on 11 year ago. The 1099-R is for the proceeds from the life insurance and the 1099-B is from the buy back units paid to me from the broker. I was not aware of units associated with the life insurance. From total expenses (initial cost, servicing fees, and premiums) to keep and maintain the fractional ownership of the life insurance was used to determine taxable amount on the 1099-R box 2a. Turbo tax advised to read publication 551 to determine cost basis when on form 1099-B cost basis is blank. The following is what's on publication 551: " The basis of property you buy is usually its cost. The cost is the amount you pay in cash, debt obligations, other property, or services. Your cost also includes amounts you pay for the fol-lowing items.
Sales tax.
Freight.
Installation and testing.
Excise taxes.
Legal and accounting fees (when they must be capitalized).
Revenue stamps.
Recording fees.
Real estate taxes (if assumed for the seller).You may also have to capitalize (add to basis) certain other costs related to buying or producing property". This is the only way, it seems, the program will not tax you twice. I just don't feel comfortable in using cost amount twice and prefer more advise because turbo-tax is not helping.
