1099-B ESPP and Dividend Reinvestment

That makes no sense. The 1099-B shows only sales proceeds. You have to compute the basis yourself.

You overestimate it. It will take whatever numbers you put for your basis, since it knows no better.

Ah, so we're using the interview. If you can't figure out how to do this through forms entry rather than the interview, give up and go pay someone to do your return rather than incurring the medical expenses of a stroke. If you sold all your shares it should be pretty easy through forms entry mode. Your basis is the total invested, including reinvested dividends and any amounts deemed to be wages. You do have to split it between long and short term holdings. Then you go to the 1099-B input form and plop the information in the appropriate spaces, using "various" for the purchase dates, as appropriate, as you'd know from the Schedule D instructions if you were doing the return without the "assistance" of software.

-- Phil Marti Clarksburg, MD

The ESPP shares are handled under the rules for qualified stock options. How you report them and compute ordinary gain and capital gain/loss will depend upon whether you had a qualified or disqualified disposition. The 50 shares you purchased via dividend reinvestment are treated the same as any other over the counter purchase. You use the actual date of purchase and the price you paid as their cost basis. If there were lots of small transactions, you can lump all the short term transaction together and use "Various" as the purchase date. Ditto for the long term transactions.

Wow. And this forum is moderated?

A succinct helpful reply. Many thanks. I had exactly the same question as the OP.

-- Chris Cowles Gainesville, FL

Amazing isn't it?

Fortunately, there are not a lot of that kind of reply here.

-- To email me directly, remove CLUTTER.

Moderator: I let Phil's reply through because it is just paraphrasing the adage that if you can't prepare a return with pencil & paper, software will not help you. In the next well-needed update to the website, there will be a page with links for software assistance.

Personally I think that Phil's comment, while a bit harsh, was not out of line. As far as moderation, I think a light hand is called for, and Dick does an outstanding job. Stu