Skip to main content
January 25, 2024
Question

Form 1099-B / 8949 Cost Basis

  • January 25, 2024
  • 1 reply
  • 0 views

After selling a mutual fund held since 1993, I received my 1099-B with two parts.  The second part stated " Transactions for which basis is NOT reported to the IRS and for which short-term or long-term determination is unknown.  You must determine short-term or long-term gain/loss based on your records on Form 8949, Part I with Box B checked or on Form 8949 , Part II with Box E checked as appropriate".  So , does that mean my cost basis is what I paid back in 1993 ( I never added any additional funds, reinvestments were from Capital Gains and Dividends). 

    1 reply

    fanfare
    Employee
    January 25, 2024

    No your basis in the first part  is your original investment plus all the reinvested dividends and gains up until the time broker started tracking it for you some time around 2012.

    your basis in the second part is on your 1099-B

     

    you need to allocate the two parts based on the number of shares held at the end of the uncovered period.

     

    @musicmaiden161 

    s

    fanfare
    Employee
    January 25, 2024

    clarified 

    @musicmaiden161 

    fanfare
    Employee
    January 25, 2024

    to be clear, the part where basis is NOT reported to IRS, I called the first part (earliest).