1099-B Question

[Eli]

Client received a 1099-B after filing his return. The 1099-B shows the amount of sale reported to the IRS, but does not show the cost basis of the stock sold. It also does not show the date of acquisition, which I'm pretty sure would be various dates.

What would be the best route to find the cost basis for it?

[Pacun]

The best route will be to ask the taxpayer how he put his hands on the item he sold. If taxpayer answers that question, then you can ask if he fork over some dinero.

[BulldogTom]

Hey Eli,

You are going to have to get this info from the taxpayer. Hopefully he has a clue. Otherwise it is the client who is going to get the tax bill for the gain when IRS does the matching later in the year.

Tom

Lodi, CA

[Eli]

Thanks, guys! I was afraid of that. I talked to him earlier & he says he has no clue how much he paid for the stocks. He says the company would take a % specified by him from his pay to buy the stocks twice a year. He left the company about 2 years ago & kept no records. Well I guess I'll have to break some bad news to him.

Thanks again!

Eli

[Kea]

I suppose it's too much to ask if he has his year-end check stubs with the YTD info. This won't have the price per share, but would indicate the total price he paid for shares. And it won't take into account reinvested shares. His former company might be able to help. No guarantees but it wouldn't hurt to ask.

[Eli]

Thanks, Kea! I'm trying to get anything he might have. He's looking now that I scared him with the amount :-)

[Kea]

That is frequently the best way to get them to find basis info. Good luck!