Questions tagged [cost-basis]

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3answers
2k 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 ...
10
votes
2answers
37k views

How should I report my RSUs in my tax return

I had some RSUs where some amount (call it V) vested. Then tax was taken and a smaller amount (call it R) were released, which I sold. I'm using E*Trade, and HR Block have imported my 1099-B form. ...
9
votes
4answers
3k views

Gift house to parent then inherit it back to increase basis?

(Question for USA taxes.) Let's say that I have one remaining parent who is quite advanced in age. I own an investment house that has appreciated in value significantly. I want to sell it eventually, ...
8
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3answers
12k views

In the event of a corporate spin-off, how can I calculate the correct cost basis for each company's shares?

Consider this example: Siemens is going to have a spin-off (next Monday). If I owned, say, 10,000 shares of Siemens bought at an average price of 80 euros, my cost would be 800,000 euros. In the ...
8
votes
1answer
540 views

What are the tax liabilities or impact for selling gold in the USA?

What are the tax liabilities for selling gold? For example, suppose I bought an ounce of gold in 2005 at $500 and I sold it yesterday for $1,500. What kind of taxes are due on this (in the United ...
7
votes
3answers
3k views

What is my cost basis for an old computer given to me by a client when they upgrade?

I do I.T. and sometimes a client will want to upgrade or buy a new computer even when their old one is decent. Suppose they give me a computer that they paid $1000 for, and the FMV is around $400 at ...
7
votes
1answer
709 views

How is peer-to-peer lending taxed in the US?

If I make a $1000 investment in peer-to-peer lending, then are the repayments simply taxed as interest payments, similarly to interest earned in a savings account, or is there a reflection of the cost ...
6
votes
1answer
962 views

1099-B, box 5, how to figure out cost basis?

(in the USA) I just got my 1099-B for stock that was sold last year. Since the company was bought out, all my stock in this company was sold. This stock was originally invested when I was very ...
6
votes
1answer
737 views

It is ok if I under-report my cost basis for certain securities?

Yes, I would like to say that my cost basis is lower than it actually was (and thus pay more taxes). Quick story, which I think is mostly correct (but I can't remember all details): I own shares ...
6
votes
1answer
785 views

Cost basis step-up on inheritance of real estate

Assume there is a property owned by a couple with one son. When one parent dies, s/he bequeaths one half interest in the property to the son and half to the spouse. Two years later the property is ...
5
votes
1answer
913 views

Is it possible to withdraw your cost basis from an investment to minimize capital gains taxes?

Say you invest $10,000. In a couple of months, that $10,000 investment is now worth $50,000. You decide you want to take out your initial investment of $10,000 back into cash and let the remaining $40,...
5
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6answers
1k views

What are the negative implications of the 2011 cost basis reporting law?

The United States has a new law requiring brokerages to report the cost basis of sales on IRS Form 1099-B. For stocks purchased after January 1, 2011, financial services firms will have to report the ...
5
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2answers
124 views

Cost Basis in Retirement Accounts Irrelevant?

Since distributions are considered income for traditional accounts, and Roth distributions are not taxed, does using Lot Identification instead of Average Cost (or vice versa) make any difference ...
4
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1answer
205 views

Is a mutual fund sale eligible for a step-up in basis when spouse dies

Can a wife get a step-up in basis on a mutual fund sale when the husband is deceased(fund was owned together, living in California)? If so, do you just document the cost-basis research and then use ...
4
votes
1answer
82 views

Cost Basis Of Stocks Of Numbers of Companies With A Financial Firm Before Transfer To The Present and Of Records Lost To Client?

What if there are shares of companies each which were purchased six to nineteen years ago with a prior financial firm before being transferred to the present financial firm? What are ways to get the ...
4
votes
2answers
1k views

When transferring shares to an adult from a irrevocable trust, what is the cost basis of those shares?

My grandparents set up an irrevocable trust account that has a few stocks in it. Now those shares are being transferred to me from the trust. Since those shares have value at some point, Uncle Sam ...
4
votes
1answer
530 views

How do I track investment performance in Quicken across rollovers?

I use Quicken to track investments. I'd like to track performance. Here is a situation that feels wrong: I buy stock S for $10/share. I hold for 5 years. I sell S at $20/share and buy S2 for $20/...
4
votes
1answer
339 views

Calculating cost basis

I am trying to calculate the cost basis of a mutual fund held in an investment account (rather than a tax-sheltered account), for tax purposes. Date Trade Units Unit Price Amount -...
4
votes
3answers
939 views

Why does my brokerage show “adjusted due to previous wash sale disallowed loss” when I sold my entire position?

Over a month ago, I wanted to do some tax-loss harvesting. I wanted to sell a fund that had dropped in value and replace it with a more generic fund. Right before I sold, the fund paid out dividends ...
3
votes
2answers
862 views

Why is RSU tax basis based on remaining shares after shares are witheld?

I'm trying to un-confuse myself about something I seem to have wrong based on my reading (This site, btw, seems to be a good resource.) If I vest 100 shares and the price was $20 that day, I will ...
3
votes
1answer
13k views

What does it mean when a business reports its costs on a “fully loaded basis”?

What does it mean to ask a private business to report their costs "on a fully loaded basis"? And then to ask them to "please indicate the fully loaded basis for which the costs are reported"?
3
votes
4answers
11k views

Cost basis allocation question: GM bonds conversion to stock & warrants

So back when the 2008-2009 financial crisis was in full swing, I bought some GM bonds at depressed prices. These have now been converted to stock and warrants in the new GM company; a while back I ...
3
votes
1answer
138 views

If you a sell a percentage of your holdings in a fund and specify the average cost basis, can you later select another method when you sell again?

Suppose I bought $5,000 in Vanguard Total International Stock Index Fund over several installments, some before 2012 and some after 2012 (set to reinvest), and now it's worth $10,000. I would like to ...
3
votes
1answer
95 views

Find cost for specific investment over last year in GnuCash

I have a mutual fund account containing purchases over several years. Each year there are many individual purchases. The "Balance" column is useful for telling me the total number of shares purchased ...
3
votes
1answer
738 views

Handling rounding errors when picking cost basis

I am working on the capital gains taxes that the United States IRS demands (Form 8949 and Schedule D). Choosing a good algorithm for picking a cost basis for a sale seems to not be easy in the ...
3
votes
1answer
1k views

Using GnuCash for accurate cost basis calculation for foreign investments (CAD primary currency)

I'm looking to use GnuCash for investment tracking and while I evaluate the software, I am specifically interested in how to get it to properly calculate the ACB of foreign investments in CAD. For ...
3
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1answer
1k views

Calculation of Loss for GM Bonds and Cost Basis of New Issues

In 2011 GM bonds were converted to new GM stock and series A and B warrants. For tax purposes, I have read where others reported the cost basis of new shares received for the new GM and the WSA and ...
3
votes
1answer
130 views

During retirement, what if form 8606 is missed one year? Non-deductable 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 ...
2
votes
1answer
113 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 ...
2
votes
2answers
2k views

ESPP cost basis and taxes

I participated in a qualified employee stock purchase plan (ESPP) and the offering period just ended. I put in $5000 and got a 15% discount on the price at the end of the offering period (no lookback ...
2
votes
2answers
555 views

Have you handled a Health Savings Account on your Alabama/California/NJ state tax returns?

I'm looking at https://www.bogleheads.org/wiki/Health_savings_account#State_taxation_of_HSAs where it says "you are required to keep good records, track the state cost basis manually, and report HSA ...
2
votes
1answer
297 views

Why are mutual fund dividends and capital gains reinvested at different prices on the same date?

Consider the following mutual fund statement. The fund reinvested both capital gains and dividends on the same date, yet the reinvestment cost per share is different for the dividends than it is for ...
2
votes
3answers
150 views

Average cost basis based on total shares held or specific shares sold?

Let's say I bought 1 share in a Vanguard mutual fund each year for 10 years. Its price started at $1 and went up by exactly $1 each year, so the price of the latest share bought is $10. The average ...
2
votes
1answer
103 views

How do I report basis for an item I sold?

I sold an item, that I personally owned, to a business for more than the $600 1099 reporting threshold. This sale was not part of any money making venture. I sold it for less than my basis in said ...
2
votes
1answer
119 views

Cost basis on sold rental property obtained by cashing out ex-wife, not incident to divorce?

My ex-wife and I bought and lived in a duplex. We eventually divorced and agreed to co-own the duplex where she remained. Later, she moved out and I moved in. (we were always on good terms). A few ...
2
votes
1answer
44 views

What is the correct cost basis to use for a qualifying disposition?

I sold some ISO stock this year that I've held for the required holding period so they can be treated as long-term capital gains and looking on my Form 8949, I see that my CPA has used the FMV as the ...
2
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0answers
84 views

In the U.S., is one who inherits artwork, antiques, or other such goods required to professionally appraise them before selling them?

Artwork, antiques, or other such goods: the category I am trying to refer to is those things which are sold on a market which is not liquid enough for it to be immediately obvious what the market ...
1
vote
2answers
95 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 ...
1
vote
1answer
132 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: (1) the value given by an accredited appraiser (2) the value ...
1
vote
1answer
54 views

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 (...
1
vote
4answers
2k views

How to calculate weighted average cost while taking into account both buys and sells?

I'm trying to write a script that will analyze all of the buys and sells I have made for each cryptocurrency I own, and then tell me the average cost for a coin so I know the cost at which it is ...
1
vote
1answer
71 views

What cost basis do I report on the 1099?

Let's say hypothetically $10,000 of RSU vested this past year. My employer has listed $10,000 of RSU onto my W-2 in Box 14. I elected sell-to-cover so now I'm left with ~$5,500 after the sell-to-...
1
vote
1answer
250 views

Can you gift assets to your parents well in advance of their deaths to get a cost-basis step-up?

I know that gifts given to parents by their children within one year of their death are not eligible for cost-basis step up upon inheritance by those same children. I understand that this is to close ...
1
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1answer
115 views

Costs around a modern crowd-sourced hedge fund

Consider the video from the front page of numer.ai. There, two statements are made 1) A hedge fund possesses a lot of expensive financial data [so numer.ai anonymizes this data before releasing it to ...
1
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3answers
98 views

Tax-Gains Harvesting: which shares to sell

My annual income this year is low enough to take advantage of gains harvesting on some long-term stock share profits to reset the cost basis for a portion of my overall holdings. The share amounts ...
1
vote
2answers
180 views

Can my new technology reduce crypto taxes?

I invented a new technology that kills your gain taxes on crypto transactions and trades... or so I think :) I am hoping that this is the case but I am not really sure and I would like you to tell me ...
1
vote
2answers
188 views

Is there a term for the portion of sale proceeds that match the cost basis?

Is there a word or phrase that refers to the portion of the net sale proceeds that aren't capital gain? I know that portion is equal to the asset's cost basis (gain = proceeds - cost basis), but I ...
1
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1answer
70 views

Cost is (maybe) part of basis for two assets

I bought two pieces of real estate from an online auction site. They charged me fee for the right to participate in the auction. First question: Should I count this fee as basis for these assets? Or ...
1
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1answer
83 views

How to calculate taxes (really cost basis) on the sale of software-as-a-service product

here's the scenario: started an online software subscription product in 2008, the only product of the business. business that owns the product is a single-member LLC (disregarded entity) paid taxes ...
1
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2answers
515 views

Does FIFO cost basis applies across multiple accounts?

Do regulations require people to manually recalculate cost-basis across all the accounts they own, if stocks were transferred between them? Example: Broker A cost basis setting is set to FIFO. ...