How to report tax info I don't have?
April 10, 2008 1:48 PM Subscribe
What date acquired and cost basis should I put for two items reported on a 1099-B, when there are several unknowns?
posted by daisyace to Work & Money (8 answers total)
I have this on a 1099-B:
10/26/07.......Avaya cash merger at $17.50 per.......quant:16.......box 2: $280.00
4/5/07..........LSI corp cash in lieu............................................box 2: $7.94
These companies came from Lucent, which my grandmother gave me years ago, before she died, and I don't know what to put for date acquired and for cost basis.
For date acquired:
- 1947 is when my grandmother's husband bought att, which both of the above eventually came from.
- 1958 is when my grandmother's husband died. I don't know whether he gave Grandma att before he died, or whether she inherited it.
- Roughly late 90's is when Grandma gave me Lucent, which had come from att.
- 12/1/06 is the date that Avaya spun off Lucent.
- 10/26/07 and 4/5/07 are the dates of the reported events on the 1099-B.
For cost basis, I know that the basis of a gift is the giver's basis. But I
- what Grandma or her husband's basis was, and which of those is relevant.
- what percent of the investment that had that basis they gave to me.
- what percent of what they gave me became the two companies in question.
If it matters, my mom thinks that when I was given Lucent, it was worth
about $25 per share, and $9500 all together. Now, all the parts taken together are worth much, much less.
I know that, to be safest, I could treat the entire $287.94 as capital gains even though they may actually be losses. This would cost me $75 in Federal tax, I'm not sure how much in state tax, plus the value of whatever loss I could have written off against other gains. I could try to find a tax advisor to help, but I suspect that would cost more than I'd save (plus, at this time of year, it would be a challenge to find one). I've tried the IRS help line and the investment firm where these are now held, but I reached dead ends because of the information I'm missing.