Questions tagged [cost-basis]

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figuring out the cost basis of a primary home converted to rental and then off rental

I bought an apartment in Washington DC in 1995 to live in. Subsequently I moved out of DC (and a few years ago, out of the country) but kept the apt and rented it out for many years. I paid the ...
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-1 votes
1 answer
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How do I determine the division of cost basis for multiple NFTs minted in a single transaction?

I understand (I think) how to assign cost basis (for income tax) to ordinary minted NFTs: Convert the minting price (including gas, fees, etc.) in cryptocurrency to dollars using the market rate at ...
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If Stocks are given as a gift, is the cost basis preserved?

When selling a gifted stock, is the entire value considered taxable income, or is the original cost basis used to calculate the difference? Thank you
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3 votes
0 answers
29 views

Cost Basis of Foreign Property That Becomes Subject to US Taxation [duplicate]

Let's say a non-US person moves to the US and then becomes US person for tax purposes of that year. At the time of arriving to the US, the person has been holding onto some property (i.e. stocks and ...
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0 votes
1 answer
138 views

Must I select "The cost basis is incorrect or missing on my 1099‑B" in TurboTax in the case of vested RSUs?

I file my US taxes via TurboTax as a US lawful permanent resident. Some of my RSUs vested in 2021, which I partly sold in 2021. My employer uses E-Trade for RSUs. E-Trade reports on Form 1099-B that ...
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1 vote
1 answer
135 views

How do I determine the cost basis on old stock?

We've had some stock in one company since the early 1990s. We had the dividends reinvested in the stock each time they were paid, so the records show we bought fractional shares from time to time over ...
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0 votes
2 answers
138 views

Could trading mutual funds be less expensive than ETFs?

I see there some mutual funds are no-transaction-fees NTF and no-load (or load-waived), the expense ratio of some of them is ~1% just like some ETFs, are both the same or trading (short term ...
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How do taxes work on an MLP whose cost basis hits zero?

For a USA MLP when the cost basis hits zero how are distributions taxed? Should you sell the asset after the cost basis hits zero or continue to hold? (Assuming management is good)
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2 votes
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Stepped-up Basis with a Revocable Living Trust

Scenario is this: son was trustee and invested extra savings in cryptocurrencies while father was alive and not able to make his own decisions. A few additional cryptocurrencies were purchased after ...
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0 votes
1 answer
94 views

Stepping up cost-basis on primary residence

This is the US. As far as I'm aware as a single person you have a $250,000 capital gains exemption if I lived in the house two of the past five years. I'm planning on moving out of my primary ...
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1 vote
1 answer
31 views

Depreciation Basis on Purchased Commercial Foreclosure

I've hit a roadblock in my research on the use/abuse of TIFs. I've asked some professionals the below question, however, none were willing to answer or gave me conflicting answers. The question: What ...
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Are there any expenses related to managing renovations on a remote property that can be applied to increasing its cost basis?

I purchased a home in another state that has needed major rehab and renovation. I have been traveling to the location to organize, design, and monitor the numerous jobs performed by contractors (all ...
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1 vote
2 answers
770 views

What is the cost basis for my RSU? My 1099-B says $0

Block 14 of my W2 says $40,000 RSU. My paystub itemized the $15,000 tax deductions (fed, state, SSA, etc..). Out of the remaining $25,000, twenty thousand dollars were deposited to my E-Trade ...
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3 votes
1 answer
232 views

How to calculate capital gains on multiple trades of the same stock?

I'm curious what is my capital gain for tax purposes if I trade a security and never sell my entire position? Here's an example of what I mean: In January, I buy 10 shares of Stock A at $1 per share. ...
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1 answer
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Taxes on shares transferred from one account to another

I recently closed my Edward Jones account and performed an in kind transfer of all my shares to my Ally Invest Account. I see all partial shares (from my DRIP) had been sold for cash before the ...
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2 answers
122 views

Is this the right way to calculate capital gains when cashing out a mutual fund?

I cashed out a taxable mutual fund in January. It is a long held fund. I got an activity history of all the transactions so that I can figure out an estimated tax to send in to the IRS as currently, I'...
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1 vote
1 answer
56 views

Average cost basis for tax

Trying to understand how average cost basis works. What I didn't find is if after a sale the computation of cost basis will change for a security: I calculate the cost basis as average cost during all ...
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1 answer
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How to compute unit average cost after capital gain distributions?

My question is about how and why the average cost of a stock is re-computed after the capital gain distributions of the corresponding fund. I'll give the actual example that confuses me to ground the ...
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1 vote
1 answer
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IRS Wash Sale Rule: can a single lot be adjusted more than once?

When the only eligible replacement shares for a wash sale basis adjustment have already been adjusted, are they adjusted again? Or is the loss allowed? Example: Suppose this is the entirety of my ...
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1 vote
1 answer
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Can I select lots for exercised covered calls on transferred shares where I'm tracking the cost basis?

I wrote covered calls against multiple lots of company A stock, each lot with a different cost basis. I originally bought the shares through eTrade, later transferring them to Vanguard. Only a portion ...
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1 answer
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Should spouses filing together, who both have traded bitcoin, mix transactions when calculating FIFO cost basis?

Or should the two sets of transactions be kept separate for calculating cost basis and gains/losses? On a related note, what if one person filing alone has accounts at multiple exchanges, should the ...
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6 votes
1 answer
249 views

How figure out cost basis when the same asset is located in different brokerage accounts?

I have two brokerage accounts Robinhood and TD Ameritrade. Here are my transactions for ABC stock: Jan 10, 2020 bought 10 ABC from Robinhood. ABC price $50 Jan 15, 2020 bought 70 ABC from TD ...
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1 vote
0 answers
26 views

how to transfer ownership of private illiquid shares and what is cost basis?

I own a few shares of a private firm. The shares are registered at Carta, but trading is not allowed. How can I transfer the ownership to my son so that the cost basis would be the price I bought them ...
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2 votes
1 answer
56 views

Cost basis of Limited Partnership assets

There is a limited partnership (an LLC taxed as a partnership) that owns various assets. If I buy interests in the partnership from existing limited partners at an arbitrary price, how is the cost ...
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1 vote
1 answer
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Question about ROIC

I was reading a book called "Pitch the Perfect Investment" and I reached a table of data I did not understand (attached below). Can anyone explain why cost of capital is not tallied for the ...
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2 votes
1 answer
4k views

Determining cost basis in a SPAC unit split into stock and warrants

I bought 400 shares of IPOB.U at $11.84/unit. Each unit can be split into 1 share + 1/3 warrant when the holder desires (after the stock and warrants start trading freely, but not before.) I called my ...
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1 vote
2 answers
263 views

Wash-sale Cost Basis Adjustment question

I wonder about the Adjustments to Cost Basis after a wash sale occur. Considering this Example 1 ( from marketwatch.com) where someone: On 1 Dec, 2018 used an amount of money in his account to buy 100 ...
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Wash Sale Rule --> disallowed loss carry forward in this particular scenario where I buy replacement shares just *before* selling the entire position?

Please see the example below illustrating a scenario where I buy replacement shares before selling the entire position. My questions are: If I don't buy replacement stock for 30 days after May 8th (...
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1 vote
0 answers
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Allowable depreciation for rental property with varying personal usage

I have a rental property (in the United States; Washington D.C.) that has not strictly been used 100% for business purposes over time. At various times I have occupied different portions of the ...
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1 vote
1 answer
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Roth conversion: why is cost basis the basis of original SEP-IRA investment?

I just converted some money in a SEP-IRA to a Roth IRA. The value of the fund that money was invested in was down about 10% from when I initially invested in the SEP-IRA. Once the transaction was ...
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0 votes
1 answer
573 views

Same stock in separate accounts. FIFO implications

If I held shares of a specific stock since 2016 in one account (let's say Fidelity) and would like to day trade the same stock in another account (E-trade) would the cost basis be treated separately ...
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1 vote
1 answer
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Is a cost basis on an after tax 401K the money I owe tax on?

I make after tax contributions to my company 401K. 15 years ago my company didn't offer a ROTH 401K but allowed for after tax contributions. My contributions are 8% of my base pay (after tax) and my ...
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1 vote
0 answers
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Reporting adjusted cost basis for ESPP shares

I have a 1099-B from selling some lots of shares purchased through an ESPP. The sales are qualifying dispositions as the shares were held longer than 2 years from the grant date and 1 year from the ...
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2 votes
1 answer
128 views

What happens to the cost basis when property declines in value between its purchase and the death of its purchaser?

My question is propted by this question on the logic behind the stepped up cost basis for inherited property, but is in no way a duplicate. Suppose that the value of, say, a stock at the time of the ...
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  • 1,838
1 vote
1 answer
564 views

Can I change a cost basis method retroactively?

On Form 8949 of my 2017 tax return, I reported short-term (Box C) & long-term (Box F) "transactions not reported to you on Form 1099-B". Will the IRS allow me to file an amended return that ...
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1 vote
2 answers
117 views

Traditional IRA with No Deduction Allowed

Martha is a W-2 employee, lives in the U.S., and works for a company that doesn't offer a 401(k). She is maxing out her traditional IRA every year 2010-2019 but she is not qualified to take any ...
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-1 votes
2 answers
126 views

Would the cost of an item be more accurately expressed as a ratio of cost vs. minimum wage?

I'd like to express the cost of items in a document that can help with spending decisions in the long term. For instance, an item costs $30, with the minimum wage being $15/hr. in the present year. ...
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3 votes
1 answer
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During retirement, what if form 8606 is missed one year? Non-deductible traditional IRA contributions

What happens if, during retirement, you miss filing form 8606 one year? Form 8606 is used to track non-deductible contributions to an IRA. In retirement those contributions can't be taken out all at ...
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1 vote
0 answers
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What value to enter in yahoo finance cost basis

I've just started using yahoo finance. I've only bought shares at atm. I've added Portfolio->My holdings-> Symbol-> Lot Under Lot what is the value to enter on Cost basis? Is it share cost per share ...
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3 votes
1 answer
491 views

When two valid methods used to determine step-up in value at death for real estate differ, can one freely choose the most advantageous?

I have been told that there are (at least) two methods to determine the value of real estate at death, for cost-basis step-up purposes:, specifically to calculate the capital gains tax if the property ...
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  • 1,838
11 votes
4 answers
5k views

401(k) cost basis

My first 401(k) started in the early 1990s with some employer matching funds. Since then, there have rollovers, more 401(k)s, and lost records. Aside from a really rough estimate, what happens when ...
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2 votes
2 answers
2k views

How to calculate cost basis for RSUs that are vested and never sold?

Following is my situation (changed the numbers for simplicity): ABC Inc vested 120 RSUs in 2018, in which 20 RSUs were sold by my employer (price of the share $10, and $20 trade fee) for the tax ...
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-1 votes
2 answers
199 views

When I am continually trading an asset, when does each wash sale loss get applied?

Let's say I buy 20 shares of stock at $100 each, and later sell half of those shares at $90. Less than a month later, I buy back 5 shares of the same stock at $95. The stock then rises to $101 and I ...
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1 vote
1 answer
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Broker got basis wrong on 1099B

I held some ANDV stock that got bought out by MPC. Terms of the deal were approximately 1.626 shares of MPC per ANDV share, plus $19.80 cash per ANDV share. My 1099B is showing a gain of $1,643.32 (...
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0 votes
1 answer
207 views

How can I calculate my cost basis for GENERAL MTRS CO WTS EXP 07/10/20?

About ten years ago The firm holding my money put some GM bonds into my investments. The records are gone and now the bonds are called: GENERAL MTRS CO WTS EXP 07/10/20.
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1 vote
1 answer
118 views

I don't have a 'I'll enter additional info on my own' button for correcting the cost basis of a stock sale on TurboTax online

The help section of TurboTax says that to enter the corrected cost basis of a stock sale, I need to click the 'I'll enter additional info on my own' button, but I don't have this button.
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1 vote
1 answer
377 views

Why is the cost basis reported by a broker on RSUs 0 USD?

I notice that E-Trade reports on the Form 1099-B that the cost basis for vested RSUs is 0 USD. Shouldn't the cost basis that report in my tax form be the value of the shares at the time of vesting? ...
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2 votes
1 answer
124 views

Mismatched cost basis on 1099-B form for ESPP shares

I have a question about my 1099-B form regarding ESPP sales. My company allows me to buy shares at a 15% discount through an ESPP program. I buy-and-hold for 1 year 1 day so my sales are taxed at ...
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  • 241
1 vote
1 answer
241 views

Roth IRA Nondeductible basis

I've been using TurboTax to file my taxes for the past decade or so. Since 2015, for income reasons, I have been making after tax (nondeductible) contributions to a Traditional IRA, and then ...
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  • 241
1 vote
1 answer
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Calculating the basis for shares of international stock mutual fund

I'm calculating the basis in connection with redeeming shares of an international stock mutual fund. The fund has paid dividends quarterly, which I reinvested. I'm reviewing the Federal 1099-DIV ...
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