undetermined term transactions for noncovered tax lots

[cedar995]

Got a 1099-B with monthly proceeds which totaled $7.17. No quantity of shares listed, no cost basis. A "cost basis factor" was given for each month which averaged about .0004.  What do I use for a cost basis? Stock acquired in 2010 for $29/share. Thank you.

[JulieS]

If you are not able to determine the amount of stock that was sold, you may have to list $0 as your basis. 

Before you do that, look carefully at the details of your 1099-B statement. A typical 1099-B has very little information on the 1099-B form, especially for the noncovered securities.

But further back in the details, sometimes you find all the information that you need. Start by checking the Box for this transaction, it should be E, based on what you said, so it will be near the back of the detail statements.

You will probably find the fractional amount of shares sold and maybe even the cost basis for these transactions.

If it turns out that .0004 is the amount sold, that will come out to just over 1 cent basis, so it will round down to $0.

[cedar995]

Thank you. I'm still confused. I have not sold any of this stock. It is SLV, a trust. On one part of the consolidated 1099-B it lists for every month (see below)

Date sold or disposed, Quantity, Proceeds, Date acquired, Cost or other basis, Additional info

01/31/19, 0.000, 0.59, N/A, Cost basis factor 0.0000414000

.

.

Later on in the 1099-B, under Fees and Expenses, it gives monthly dates

Date, Amount, 

01/31/19, -0.59

.

.

For each of the months, the "cost" is exactly the inverse of the "proceeds." So the total proceed is $7.17 and the total fee is -$7.17. 

I spoke with someone at TD Ameritrade who said the $7.17 was "return on capital" but that made no sense to me. 

Please advise. Thank you.

[DaveF1006]

Form 1099-B - Return of Principal Return of Capital. .However, if the return of capital or principal is more than your basis, then you will need to report a capital gain equal to the amount received in excess of your basis.  They sent you this statement because as a result of return of capital, your capital gains is $7.17. This may have been a result of a reinvested dividend.  You might also look at your disclosure information in the brokerage statements if they sent you any. Anyhow, it sounds like the capital gains was negated by the investment expense.