I received a Composite Statement of 1099 Forms from Raymond James & Associates. In the 1099-B section of the statement it reported the redemption of the Guggenheim US 50 unit investment trust that I purchased in 2018 and held to maturity in 2019. Dividends were paid monthly and reinvested in the trust. There were 12 Short Term Transactions for Noncovered Lots and 2 Long Term Transactions for Noncovered Lots that I entered manually in TurboTax.
There was one Nondetermined Term Transaction for Noncovered Lots that was identified as a Return of Principal. Where or how is this entered in TurboTax? Is a Return of Principal the same as a Return of Capital?
If it is a Return of Capital, do I need to go back and adjust the cost basis of all transactions that occurred prior to 03/072019? Or, can I simply adjust the cost basis of my original purchase of the trust?
You can report the Non-determined Term Transaction for Noncovered Lots transaction by adjusting the basis to the same amount as the proceeds, so no gain or loss.
In turn, you should adjust your original cost basis, since it a return of principle, which is the same as a return of capital.
You can report the Non-determined Term Transaction for Noncovered Lots transaction by adjusting the basis to the same amount as the proceeds, so no gain or loss.
In turn, you should adjust your original cost basis, since it a return of principle, which is the same as a return of capital.