How to know cost basis method on 1099-B?
-
- Posts: 194
- Joined: Mon Dec 23, 2019 11:35 am
How to know cost basis method on 1099-B?
How can I tell from a 1099-B whether a mutual fund sale was done using spec id or average cost basis method?
-
- Posts: 2365
- Joined: Tue May 27, 2014 3:50 pm
Re: How to know cost basis method on 1099-B?
You can't. You can see what the cost was. Then look at your records to match that if you can.userwithconcern wrote: ↑Sat Apr 17, 2021 8:36 pm How can I tell from a 1099-B whether a mutual fund sale was done using spec id or average cost basis method?
If you didn't tell the brokerage, they used their default.
-
- Posts: 194
- Joined: Mon Dec 23, 2019 11:35 am
Re: How to know cost basis method on 1099-B?
Okay, thanks. Say it had been done using spec id, and say the sale had multiple lots in it. Would each lot be listed out separately on the 1099-B?trueblueky wrote: ↑Sat Apr 17, 2021 8:45 pmYou can't. You can see what the cost was. Then look at your records to match that if you can.userwithconcern wrote: ↑Sat Apr 17, 2021 8:36 pm How can I tell from a 1099-B whether a mutual fund sale was done using spec id or average cost basis method?
If you didn't tell the brokerage, they used their default.
-
- Posts: 2365
- Joined: Tue May 27, 2014 3:50 pm
Re: How to know cost basis method on 1099-B?
Your brokerage should provide details with each date of purchase listed separately, if the brokerage has that information.userwithconcern wrote: ↑Sat Apr 17, 2021 8:49 pmOkay, thanks. Say it had been done using spec id, and say the sale had multiple lots in it. Would each lot be listed out separately on the 1099-B?trueblueky wrote: ↑Sat Apr 17, 2021 8:45 pmYou can't. You can see what the cost was. Then look at your records to match that if you can.userwithconcern wrote: ↑Sat Apr 17, 2021 8:36 pm How can I tell from a 1099-B whether a mutual fund sale was done using spec id or average cost basis method?
If you didn't tell the brokerage, they used their default.
Then it should provide a recap with four lines:
Short term where the basis was reported to IRS
Short term where basis was not reported to IRS (rare)
Long term where basis was reported to IRS
Long term where basis was not reported to IRS (often, these are very old)
-
- Posts: 194
- Joined: Mon Dec 23, 2019 11:35 am
Re: How to know cost basis method on 1099-B?
So say there is only one sale entry on the 1099-B for the shares of a mutual fund acquired on various dates. Does this mean they used average cost basis?
-
- Posts: 2365
- Joined: Tue May 27, 2014 3:50 pm
Re: How to know cost basis method on 1099-B?
Probably. What is their stated default?userwithconcern wrote: ↑Sun Apr 18, 2021 11:08 am So say there is only one sale entry on the 1099-B for the shares of a mutual fund acquired on various dates. Does this mean they used average cost basis?
Re: How to know cost basis method on 1099-B?
Don't you have a statement that documents the actual sale and can provide you the cost of each lot sold?
-
- Posts: 194
- Joined: Mon Dec 23, 2019 11:35 am
Re: How to know cost basis method on 1099-B?
Sorry, reviving old thread, still haven't found the answer. The stated default is average, but I changed it around a few times, I would like to know the answer still.trueblueky wrote: ↑Sun Apr 18, 2021 11:23 amProbably. What is their stated default?userwithconcern wrote: ↑Sun Apr 18, 2021 11:08 am So say there is only one sale entry on the 1099-B for the shares of a mutual fund acquired on various dates. Does this mean they used average cost basis?
If it was SPECID, wouldn't every lot have been listed separately? Isn't that correct?
Re: How to know cost basis method on 1099-B?
I think you have the answer here. What else are you looking for?trueblueky wrote: ↑Sat Apr 17, 2021 8:45 pmYou can't. You can see what the cost was. Then look at your records to match that if you can.userwithconcern wrote: ↑Sat Apr 17, 2021 8:36 pm How can I tell from a 1099-B whether a mutual fund sale was done using spec id or average cost basis method?
If you didn't tell the brokerage, they used their default.
I can give you a perspective of one brokerage house on how it shows on the 1099-B for me. I keep my account profile for my taxable brokerage account to be Spec ID. I see the following from my 2021 1099-B:
Line 1b - Date acquired
Line 1d - Proceeds from the Sale
Line 1e - Cost basis
Additional Information: footnotes provided to further explain the Sale, my footnote noted that the Sale was completed first in, first out.
For my personal tracking, I keep a spreadsheet where I document taxable transactions. This spreadsheet is part of a larger portfolio picture and is what I have done for years to keep track of personal finances. I can easily see my transaction history from the brokerage house and just transfer the relevant information when doing taxes but I prefer keeping the spreadsheet detail.
Re: How to know cost basis method on 1099-B?
I would say yes. I can not think of any way around separate listings for each tax lot if spec ID.userwithconcern wrote: ↑Wed Oct 05, 2022 8:52 pmSorry, reviving old thread, still haven't found the answer. The stated default is average, but I changed it around a few times, I would like to know the answer still.trueblueky wrote: ↑Sun Apr 18, 2021 11:23 amProbably. What is their stated default?userwithconcern wrote: ↑Sun Apr 18, 2021 11:08 am So say there is only one sale entry on the 1099-B for the shares of a mutual fund acquired on various dates. Does this mean they used average cost basis?
If it was SPECID, wouldn't every lot have been listed separately? Isn't that correct?