1099B Cost Basis Analysis

[megdog]

Hello. I received a 1099B from DWS, after withdrawing $6K last year. This is a long-term stock fund that I invested in over several years starting in 1990.

On my 1099B form from DWS there is no cost basis entered in Box 1E, and no Dated Acquired in Box 1B. I'm trying to figure out my Cost Basis and enter it in Turbo Tax Box 1E. My question is in the calculation of cost basis.

i.e. If I acquired 150 shares of Stock X in 1990 @ $20 a share.

Sold same 150 shares of Stock X in 2024 for a lesser amount of $15 a share, would my cost basis go like this?

1990=$3000

2024=$2250

Cost Basis=$750

Is this how you do it? Also, if shares were purchased on different dates at different stock share amounts, can you take the average?

Thank you.

[robtm]

Cost basis 1990 = 3000

Proceeds 2024  = 2250

Profit LT cap loss = -750

To find cost basis of shares purchased at different times divide the total cost of all shares by number of shares. This will give you the average cost basis per each share. Multiply this by number of shares sold to get cost basis.

[rjs]

You are confused about the terminology. Cost basis is the amount you paid for the shares when you bought them. The amount you sold them for is the proceeds of the sale. In your example, the cost basis is $3,000. The proceeds are $2,250. The $750 difference is a capital loss.

You can use the average basis method for mutual fund shares. For details of the rules see "Special Rules for Mutual Funds" starting on page 67 of IRS Publication 550, "Investment Income and Expenses."

[megdog]

I'm still confused. In my example do I:

enter $2250 for cost basis in Turbo Tax?

enter -$750 for cost basis? Turbo Tax won't let me enter a negative number, so this won't work. 

Right now I've entered $0.0 in cost basis and I'm getting taxed on the whole $6K.

[rjs]

As stated in the previous replies, your cost basis is $3,000. I can't be any more clear about it. Since your cost basis is $3,000, enter $3,000 as the cost basis in TurboTax.

The proceeds are $2,250, so you enter $2,250 as the proceeds.

You do not enter the gain (profit) or loss. TurboTax calculates the gain or loss after you enter the cost basis and proceeds. You do not enter $750 anywhere. TurboTax calculates it.