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Level 1
posted Feb 1, 2021 2:03:19 PM

Cost basis of inherited mutual fund

I inherited 700 shares of a mutual fund in 2018 and sold it in 2020.  The mutual fund was selling at $20 a share when my aunt died so i calculate the cost basis as $14000.  However, my 1099-B breaks down the sale of the mutual fund into 22 seperate sales of stock some of which are short tem covered and uncovered and long term covered and uncovered.  When i sold the  mutual fund in 2020 it was selling for $18 a share so i actually lost $1400.  How can i figure out the cost basis of each of these individual stocks so that all the numbers work out right?

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1 Replies
Expert Alumni
Feb 1, 2021 2:24:02 PM

You can aggregate the sales into long term and short term, so that you only make two sales entries. As long as you get the sale amounts and cost basis correct, you will be reporting the correct gain or loss and have it correctly categorized as short term or long term.

 

If you do this, the IRS requires you to mail your tax return in and include a copy of the form 1099-B detail.