You can choose to use 'Various' however you must know whether the holding period is long or short term. Stocks are considered as first in-first out, meaning the cost begins with the first purchase and includes reinvested dividends as well as possible stock splits and of course additional purchases you may have made over time. As your financial agent for a history or you can use a browser search for the cost on specific dates you purchased shares. An average cost is allowed for mutual funds but not stocks.
Holding Periods:
- Long term is a holding period of more than one year (one year plus one day) and receives capital gain tax treatment (0%, 10%, 15%, 20% depending on your regular rate of tax)
- Short term is a holding period of one year or less and receives ordinary gain tax treatment (your regular rate)
Once you have your cost basis you can use the steps below to select the correct entry to add your cost basis.
Where do I enter Form 1099-B?
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