Stock Cost Basis for Sales

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TBillT
Posts: 794
Joined: Sat Sep 17, 2011 1:43 pm

Stock Cost Basis for Sales

Post by TBillT » Thu Nov 07, 2019 10:51 am

We inherited some in-kind stocks unfort a big mish mash of small positions in lousy quality stocks, so we are selling the positions once we get them.

A number of the stocks have had mergers/splits/spin-offs etc. since the date of our loved ones death several years ago, which in some cases makes the calculation of cost basis more complex. The trustee is giving us a simplified cost basis that is not strictly accurate in the more complex cases.

>>Is there a tax software program or other software that calculates, for a given stock, for given dates of purchase/sales, the cost basis including the more complex spinoff cases, etc?

fabdog
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Location: Williamsburg VA

Re: Stock Cost Basis for Sales

Post by fabdog » Thu Nov 07, 2019 11:08 am

The accounting firm I do some work for uses this software to generate accurate cost basis for stocks as part of estate return work, and having accurate cost basis for inherited stocks.

It looks like you can download the software and use it, it's $2.20 per security... but I'd ask the trustee why they aren't providing you accurate cost basis info and using a tool like this

https://www.evpsys.com/evp/products.html

Mike

Gill
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Location: Florida

Re: Stock Cost Basis for Sales

Post by Gill » Thu Nov 07, 2019 11:27 am

The trustee not only should give you the bases but should have liquidated these holdings years ago.
Gill
Cost basis is redundant. One has a basis in an investment | One advises and gives advice | One should follow the principle of investing one's principal

inbox788
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Re: Stock Cost Basis for Sales

Post by inbox788 » Fri Nov 08, 2019 5:27 am

TBillT wrote:
Thu Nov 07, 2019 10:51 am
We inherited some in-kind stocks unfort a big mish mash of small positions in lousy quality stocks, so we are selling the positions once we get them.

A number of the stocks have had mergers/splits/spin-offs etc. since the date of our loved ones death several years ago, which in some cases makes the calculation of cost basis more complex. The trustee is giving us a simplified cost basis that is not strictly accurate in the more complex cases.

>>Is there a tax software program or other software that calculates, for a given stock, for given dates of purchase/sales, the cost basis including the more complex spinoff cases, etc?
If there's no immediate choice to make but to wait for the data, don't worry yet. First, see if what the trustee is giving you is adequate. If it's close enough, it might not be worth the trouble to be exact. You might not have enough information to be exact and the best option is to take the trustee data. The more official the better, so try to get statements rather than text from the trustee. If you have a few symbols, finding corporate actions is a doable. What's the expected value of the whole account? Total cost basis? Each individual small position will be minor, and depending on how many losing positions, you might be able to TLH and get rid of small gain ones.

Topic Author
TBillT
Posts: 794
Joined: Sat Sep 17, 2011 1:43 pm

Re: Stock Cost Basis for Sales

Post by TBillT » Fri Nov 08, 2019 7:23 pm

fabdog wrote:
Thu Nov 07, 2019 11:08 am
The accounting firm I do some work for uses this software to generate accurate cost basis for stocks as part of estate return work, and having accurate cost basis for inherited stocks.

It looks like you can download the software and use it, it's $2.20 per security... but I'd ask the trustee why they aren't providing you accurate cost basis info and using a tool like this

https://www.evpsys.com/evp/products.html

Mike
Thank you I will give it a try.
Our loved one picked a big unnamed firm to be Trustee, but it was not a good choice in hindsight.

Topic Author
TBillT
Posts: 794
Joined: Sat Sep 17, 2011 1:43 pm

Re: Stock Cost Basis for Sales

Post by TBillT » Fri Nov 08, 2019 7:48 pm

Gill wrote:
Thu Nov 07, 2019 11:27 am
The trustee not only should give you the bases but should have liquidated these holdings years ago.
Gill
Unfort Gil our Trustee firm had to do a court case to get access, and that took a year, and then it turned out they made a mistake, had to go back to court again. For some reason the Trustee firm wants to give us the stocks in kind, and it seems like the lead beneficiary wants the stocks too. It is not a smooth case at all, but we are finally seeing some light at the end of tunnel. And it is quite an accounting mess of many small positions of not very good stocks. We are selling the stocks upon receipt.

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