I purchased shares in a mutual fund 19 years ago and have reinvested the long and short term cap. gains and dividends each year. Each year I have reported 1099Div figures on my income tax forms. I have all records.
I sold all shares in 2020. The 1099B i received from Third Avenue does not have the cost basis or long or short term determination so I will have to do on my own. So in Turbo Tax do I enter my calculated cost basis when it is asking for info from 1099B or do I choose "this space is blank" and enter somewhere later on? Where do I put info on short and long term determinations--shouldn't there be 8949 form to complete? There is no guidance on what to do if cost basis and long and short term data is not on 1099B. I am confused.
The classification of long and short term was important only when those amounts were distributed and reported in the years that the distributions occurred. Now you only have to be concerned with the dollar amounts that were reinvested to to arrive at your basis. While last year’s distributions might be short term if not held for more than a year, the effect on your tax liability would probably be trivial. That amount would then be reported on your 1099-B as the purchase price.
Thanks for response. However how do I provide to Turbo Tax the data on this sale: 18 years will be long term capital gains amount and only last year will be short term amt. There is no where on Turbo Tax to provide this information. This is needed for Schedule D and 8949 form.
You will be reporting a 1099-B by going to Income >Sale of stock and can report your sale there. Since the cost basis was not known I suspect that the box for cost basis is blank. Input your calculated cost basis. Technically you could report 2 sales, one long term which would include the long term dividends added over the years and a separate sale for the short term dividend amount but that gets complicated and is probably trivial in terms of your total tax liability.