1099B

[jtf945]

My broker sold a very old investment that was not performing well.  I do not know what the cost was and I have checked back with Smith Barney and they can't find a record.  What should I do?

[macuser_22]

Without a cost basis the IRS will assume that it is zero and tax the entire amount.

[jtf945]

I actually knew this would be the end result, so went digging into some old boxes and lucky me right on top found  a statement from SB/MS that showed 100 shares of the same stock with a purchase date of 2000.  So I have the date and cost but Turbo Tax never asked for the date.  I didn't have to but what's to say if I just plugged in a number who would have been the wiser?  BTW I tried to tracked down the brokers and one retired who had become a VP of finance but when I called his old number no one knew of him and the other I googled and found that SB/MS had sue him and got a restraining order for attempting to brake away and take clients . . .

[Hal_Al · Accepted solution]

Unknown 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 are  readily available on the internet and should, at least, satisfy the IRS that your basis wasn't zero; just "google" “Historical Stock Prices". I use http://bigcharts.marketwatch.com/historical/. The stockholder relations dept. at the company may be able to help.

 I’ve heard there is a place called Netbasis.com , that will provide your cost basis for a fee, but I cannot vouch for them.

[jtf945]

I actually did reach out to SB/MS and the person who answered did try to help but even with an old account number and CUSIP # he could not find anything.  A good thing I was able to find an old statement that showed me what I needed but still Turbo Tax did not ask for the acquisition date so I guess IRS does not want or need it. . .