How do I report basis and date acquired on a small mutual fund redemption from a fund I have held since 1988?

Forum|Forum|7 years ago
June 4, 2019
1 reply
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I redeemed $1500 from a mutual fund with a $40000 balance. The fund sent a 1099-B form listing # of shares sold, date of transaction and proceeds, and stated basis not reported to IRS. How do I report the date the redeemed shares were purchased and their cost basis on a fund I have held for 30 years? I stopped investing in the early 1990's and have accumulated roll-over dividends since.

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Hal_Al

Level 15

Unknown cost basis

You have to report the sale on your tax return. Lacking any cost basis, the IRS will consider the entire sale amount as taxable. So, you need to make your best effort to determine the original cost basis, even if (worst case) it's a guess. Historical prices of publicly traded stocks and mutual funds are readily available on the internet and should, at least, satisfy the IRS that your basis wasn't zero; just "google" “Historical mutual fund Prices". I use http://bigcharts.marketwatch.com/historical/. The mutual fund company should be able to help.