1099-B Question

[db_orange]

I sold shares from a Mutual Fund.   I have had this Fund for over 30 years and my Grandfather set it up in my name.   I don't have any idea the date it was started let alone any cost information.   The fund was sold to a different Broker somewhere along the way.  Received a 1099-B with very little information.  Box 5 tells me it is a non-covered security, therefore they aren't required to populate Box 1b or 1e among others.   I don't believe this was reported to the IRS, but how does one know??   The fund is set to REINVEST dividends and I get a 1099-DIV each year and report those dividends, which are taxable.   I have a couple of questions: is this @1099-B just a FYI kind of thing since I get the 1099-DIV annually?   If the first question is no, I need to report this on my taxes, then I don't know what to put in for the 1b date acquired or 1e the cost basis.  My statements always refer to using the cost based method for reinvested transactions, but that might not mean the same thing for this.  Trying to enter this in Turbo Tax is not straight forward, the first question about sales section doesn't make sense to my 1099-B because it doesn't mention any of the options.  I can maybe assume it is long term non covered. From there I can select Mutual Fund and I think received as a gift is the right choice for the next category? after that I can fill in the boxes, but when done Turbo Tax doesn't like that I left the cost basis blank and the acquired date....any help would be greatly appreciated

[Bsch4477]

Yes, you have to report the 1099-B and the IRS receives a copy of it. You have to make a good faith effort to arrive at a cost basis or the IRS will assume it is zero. You can search websites that have a historical database for assets. 

[maglib]

@db_orange 

Happens often to people.  If  your income requires you to file a tax return, then Yes you must report the stock sale or the IRS will send you a bill assuming no cost basis.

The 1099-B should show the sales transactions.  If it was reinvested dividends, newer dividends though would have basis the broker should know.  Did you contact the agent to request cost basis details to see what they know?  What Fund is it?  The IRS will assume 0 as cost basis and tax the whole thing as gains unless you can come up with a reasonable estimate of costs.  Your purchase date, there is an option for various on the 2nd line pulldown. 

Long Term NOT COVERED just means the shares are held over a year and the cost basis was not reported to the IRS.

Long Term Covered means shares were held over a year and the broker reported the cost basis to the IRS.

Then same for Short Term.

How many categories are showing?

How much money are we talking about? Is it worth the time to uncover cost basis? Depending on what the fund was, length of time, etc, there are many cost basis calculators out there.

The bottom line is that the IRS expects you to keep and maintain records that identify the cost basis of your securities. If you do not have adequate records, you may have to rely on the cost basis that your broker reports—or you may be required to treat the cost basis as zero.

Do your best, err on the side to pay the IRS.

Yes say it was a gift or say you purchased it, either way unless you inherited it upon his passing, then use the date of death and then you can find what the FMV was when he passed away.