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Capital gains-I've held on to stocks for 16 years-If I sell who has to figure capital gains?

Forum|Forum|7 years ago
June 5, 2019
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Best answer by Hal_Al

Your question really isn't "who has to figure capital gains?" TurboTax will do that simple math.

Your real question is "who will figure out the cost basis?" The simple answer is: that's your responsibility. Your broker may be some help, but it's not his responsibility. Brokers are now responsible for providing cost basis of stocks bought after 2011. Reference: http://www.usfunds.com/investing-with-us/faqs/cost-basis-faqs/what-are-covered-and-non-covered-share...

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 stock company may be able to help.

S

SweetieJean

Employee

The program will do that for you.

VolvoGirl

Employee

If the broker doesn't report the cost basis on your 1099B for the sales you will have to enter the cost yourself. Do you have records or statements of what you paid? Did you reinvest any dividends or capital gains over the years? Those will add to the cost to reduce your gain. So don't forget to add them back in. A reinvested dividend is really two transactions, a dividend and a buy. You bought more shares.

Critter

Employee

If your broker has the basis info then it will be on the 1099-B you will get in February. If they don't then you will need to scare up the purchase confirmations yourself.

Hal_AlAnswer

Employee

Your question really isn't "who has to figure capital gains?" TurboTax will do that simple math.

Your real question is "who will figure out the cost basis?" The simple answer is: that's your responsibility. Your broker may be some help, but it's not his responsibility. Brokers are now responsible for providing cost basis of stocks bought after 2011. Reference: http://www.usfunds.com/investing-with-us/faqs/cost-basis-faqs/what-are-covered-and-non-covered-share...

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 stock company may be able to help.