Discussion:Cost basis of stock - no historical records
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Discussion Forum Index --> Basic Tax Questions --> Cost basis of stock - no historical records
Discussion Forum Index --> Tax Questions --> Cost basis of stock - no historical records
| 22 May 2009 | |
| We were hired by an estate to prepare decedent's 2005 and 2006 tax returns, and estate tax returns from 2006 forward. Decedent passed away in 2006. There was stock sold in 2005, and I was able to determine the # of shares sold. However, the heirs and the attorneys have no more records and I am not able to determine even what year approximately the stock was purchased. The stock was Sears Holdings corp, and they received the cash payout instead of shares of Sears Holding to replace their original Sears Roebuck shares. However, I don't know if their original stock was Allstate, Dean Witter, etc. Since I have no historical records, and none of the heirs have a clue about what was purchased and when, I need some input from any of you who have dealt with this type of situation before. How did you go about determining cost basis in a manner that you felt the IRS would find reasonable? Surely they must have some provision for this type of situation . . . | |
| 22 May 2009 | |
| When you searched, did you see Basis of Stock? Or Missing stock basis? There are more discussions, too, but those'll get you started and give you ideas for good search terms, while you wait for other responses. | |
| 22 May 2009 | |
| Thanks - very helpful. I didn't see those in my initial search. | |
| 24 May 2009 | |
| All investment companys send 1099 to the clients in great detail. Are copies of these sent to the IRS as other 1099's are? How long does IRS keep these records if they are reported by the investment companys? | |
| 24 May 2009 | |
| Contact the company in question. they should be able to help you. | |
| 24 May 2009 | |
| "All investment companys send 1099 to the clients in great detail. Are copies of these sent to the IRS as other 1099's are? How long does IRS keep these records if they are reported by the investment companys [sic]?"
Sounds nice, but that's not a solution. The 1099B info. is only for the gross proceeds of sales. The 1099DIV info says nothing about whether the dividends were reinvested. The IRS has never received cost basis or any other historical investment info. (I believe that beginning in 2010 securities firms are going to be required to send the IRS cost basis.) -- Larry Hess, CPA | Albuquerque, NM | |
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