topic Re: Cost bias question in Get your taxes done using TurboTax

Cost bias question

BrianJB — Tue, 09 Mar 2021 22:31:40 GMT

I received shares of a growth stock fund when I graduated college in 1979. The capital gains and distributions were reinvested into the fund. All the statements from this period have been lost. I consolidated my investments which included moving the fund to a different financial company in 2011. I contacted the original holder of the fund and was told since I no longer have an account, they could not provide any detail of my prior holding there. Last year some of this stock was sold by the group where the fund is now held so I need to report a cost bias and purchase date for the sale on my income tax. Any suggestions on how to proceed?

Re: Cost bias question

ColeenD3 — Tue, 09 Mar 2021 22:46:26 GMT

If you can't find the basis, you will have to report it as zero. You know that you have at least had them since college, so they would be long term. With the capital gains rates being so low, you may not have a problem.

Re: Cost bias question

BrianJB — Wed, 10 Mar 2021 13:53:38 GMT

Thank you for your reply. Dose the fact that I reinvested capital gains and dividends back into the fund impact on estimating any of the coat bias info? In doing so, not all of the stock I held was purchased at the same time. I'm assuming listing the purchase date as "various" will address this?

Re: Cost bias question

JohnB5677 — Thu, 11 Mar 2021 14:21:42 GMT

It sounds like you'll have to do some research and math. It’s your responsibility to keep the records of your transactions. Brokers did not have to do any of this in the past years.

The reinvested dividends would have a cost basis of the amount of the dividend.

If you don't remember what you originally paid for the rest of the stock you may be able to use Historical Stock Quote Prices - MarketWatch to determine the original value.

You're correct that you can use "Various" for multiple transactions that were not done at the same time. Be sure you retain a copy for your records of how you calculated the cost basis.

There is a procedure for entering Various into you investment transactions.

Open (continue) your return if it isn't already open.

Income & Expenses

Scroll to Stocks, Mutual Funds, Bonds, Other

Answer Yes to Did you sell stocks, mutual funds, bonds, or other investments in 2020?
- If you see Here's the info we have for these investment sales, select Add More Sales.
Answer Yes to Did you get a 1099-B or brokerage statement for these sales?
At Let's get your tax info, choose how you want to enter your 1099-B (type it in yourself)

Select the pencil to work on the transaction
In the date area there are two bullets.
- On one Date, and
- Something other than a Date
Select Something other than a Date
There is a drop down menu for Various.