1099B Cost Basis

[megdog]

I am trying to figure out Cost Basis from a 1099B form I received.

I redeemed $6000 in long term stock in 2024. My 1099B Form has no Cost Basis in column 1e, and Date Acquired box 1b is blank.

On my end of the year statement from my investment company it lists this:

Total shares owned=813                Share Price=$13.88        Cost Basis Covered Shares=$7741

I redeemed 404 shares on my 1099B Form.

Do I just divide Cost Basis($7741)by Total Shares Owned(813)=9.521 which would be Cost Basis per share.

Then multiply 9.521 X shares I redeemed(404)=$3846.69

Therefore $3846.69 is my cost basis?

I've been doing my taxes with TurboTax for over 20 years and never have come across this. It's very confusing, and I want to get it right.

Also, if this is correct. Do I use the Cost Basis from my end of year 2024 statement, or the statement before I redeemed the long term stock.(Which was in September 2024) Both Cost Basis amounts are different.

Thank You

[DianeW777]

It depends. For a mutual fund you are allowed to average the cost basis. For other stocks it is first in-first out and if your investments have been in the hands of your financial agent or more than one agent, they may not have tracked the cost. Reinvested dividends will also play a part, as well as stock splits if applicable.

Use the method you believe will provide the best cost basis for the shares you sold. Keep track of your analysis with your tax records.

[megdog]

This is a stock I've had since 1987.  No Stock split has happened. Have no idea about the agents as I bought this initially on my own. I have every statement from 1987 until 2024. This weekend I spent hours going through my statements and figuring out average prices for the stocks that I've purchased in every year and made a spreadsheet. Just having a hard time figuring out and entering the Cost Basis in Turbo Tax, because entering various Cost Basis numbers change my refund totals by substantial amounts.

If my December 2024 Statement lists my cost basis at $7741, isn't that the number I use?

Sorry for the confusion, never have had to do this in all my years of using Turbo Tax.

Thanks again...

[ThomasM125 · Accepted solution]

It would be acceptable to use the cost basis listed on your broker statement like you suggest, assuming you have no reason to believe it is not accurate.