I am doing taxes for my Mom (father is deceased). They bought 36 shares of Dow stock in 2003 through an ESPP program where my Dad worked for a short time. They do not have a 3922 that my mom can locate, or any other records of the program. Dow later merged with Dupont and Corteva and stocks were split between those three companies. Last year, my mom sold all the stock. The 1099-B for each company has three lines...X, D, and A. The D and A lines make sense and have the cost basis and dates of purchase. I assume these are not considered ESPP discounted purchases as they were reinvestment of dividends (and happened well after my father retired). The third line of each form has an X, however, with the same number of uncovered shares (46.6 shares (36 shares plus an additional 9.6 shares)) as one lot. There is no cost basis listed. However, I did find the cost basis for the 9.6 shares for each company from Computershare, but not for the original 36. The 9.6 shares were accumulated over years, again well after my father left the company. I don't have information on the discounted cost (date/cost of offer, date/cost of purchase, etc.). I did find the share cost for the Dow stock for the date they purchased the stock on-line.
What is the best way to fill out the 8948 forms? If I can't find the information that would be on the 3922, should I just record the cost basis for the 9.6 shares as the cost-basis for the lot? This means paying taxes on the initial purchase, which we can do. Should I use the share cost for that day found online (times 36) for the cost basis for those 36 purchased shares?
Turbotax isn't going to let me complete this lot unless I know the information that would have been on the 3922. What is the best way to proceed?
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The safest chose would be to report only the basis for the 9.6 shares, however the remaining shares do have a cost. Because your parents never sold the stock you can use the historic price you found online. The maximum ESPP discount is 15% so you can discount by that amount or you can try calling the company. It's possible they may know the discount rate.
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