Form 1099 B - Long term transactions for which cost basis is not reported to the IRS

[Bob Turner]

Fidelity has included merger information (public stock converted to private shares). They claim there are proceeds that exceed my cost basis. However, their value for the private shares is N/A and no real gains have been reflected or distributed. In fact, due to N/A value, I have "lost" my cost basis and I certainly have NOT received any proceeds or any money that could be construed as gains. 

NOTE: The short term transactions that are being reported to the IRS is ZERO. No cost basis or proceeds.

[DianeW777]

If you have a 1099-B with proceeds then you must report it. The cost basis for the long term transactions must be calculated by your own records.  The brokerage either does not have the correct records or the history goes before the requirement for them to track it.  The cost and not the value is what you are allowed to use to offset any proceeds received for your stock. 

There are many sites that could help you with that if you know your purchase dates and do not have all of your records.

Items of Interest to calculate cost basis:

1. Number of shares and cost purchased on each date
2. Dividends reinvestment (cost basis) dates and shares purchased
3. Stock Splits dates and number of shares before and after the split
4. Nontaxable distributions or returns of capital (reduces cost basis)

[Bob Turner]

Ok. Thanks. My concern is two fold:

1. I did NOT receive any proceeds from Fidelity - value is N/A

2. Other brokers (TD Ameritrade included) issued 1099 B that showed NO gains. Only Fidelity issued proceeds that exceeded cost.

Over 65000 investors were impacted. There are several lawsuits against Fidelity. I may just request an extension.

[fanfare]

you can correct the basis (use Code B) to align Vanguard with TD Ameritrade, assuming TD Ameritrade is correct.

see  instructions for Form 8949 to know whether you need an amount in Form 8949 Column (g).

@Bob Turner 

[Bob Turner]

Thank you!