I sold SLV shares and received "NON-MORTGAGE WIDELY HELD FIXED INVESTMENT TRUST" (NMWHFIT) additional statement on my 1099-B with a small cost basis adj. Is this needed ?

[JohnB5677]

A NMWHFIT incurs expenses that relate to the organization of the trust and the sale of trust interests (organization expenses).  You should make the adjustment, and here is the procedure to correct the cost basis on stocks from a 1099-B

1. Start at Investment income
2. Select Stocks, Mutual Funds ....
3. Choose the Broker or Institution
4. Select the individual stock
5. The data you entered will be there
6. Toward the bottom of the screen select [I'll enter additional info on my own]
7. In the entry for Box 2 enter Corrected Cost Basis

[manudhundi]

Hi John,

Thanks for the response. Below is the snapshot of the (1) The transaction of SLV in 1099B and (2) NMWHFIT additional statement that I received.

I have received a similar additional statement every year and only in 2019 I sold the SLV shares (that were bought in 2015) .

SLV transaction on 1099BAdditional Statement Outside of 1099-B

How does the cost basis change ?

And should I consider the additional statements from previous years as well ?

Thanks  

[KathrynG3]

Actually, there is not going to be a significant tax impact in 2019. If there was a significant tax impact in prior years, those years should be revisited. Otherwise, it is not necessary to make any further adjustment for 2019.

[manudhundi]

Thanks for the response Kathryn!

(1) How would this have tax impacts on previous years ? Isn't the cost basis adjustment needed only when I sell the shares ?

(2) It would be great if you could point me to any link that explains how to use this or if you would explain that here, that would be of great help as well.

Thanks,

Manu