Schedule D... Basis and acquisition price unknown....

Sure, assume zero basis and if you know it was more than a year call it long term, else short term.

investment manager? Or will the IRS object to that?

Something 'more correct' will involve more work than the tax involved. Things like this wouldn't end any worse if discussed with the IRS, i.e. you can't be accused of tax evasion by stating a sale on a zero basis, any more than I'd get in trouble by overstating my own income.

Again, the 'right' way to handle is to do your diligence and research the basis, but I'd not lose sleep over this approach. By the way, you realize any splits, spin offs, acquisitions, etc, are usually well documented.

investment manager? Or will the IRS object to that?

Why do you think it is Fidelity's responsibility to provide you with the acquisition data?

Just because you received $50 in the sale doesn't mean that the $50 is taxable income. You could have a loss, but determining that is your responsibility based on your records and the documentation provided by the company when the corporate action took place.

Ira Smilovitz

acquisition data?

income. You could have a loss, but determining that is your responsibility based on your records and the documentation provided by the company when the corporate action took place.

I don't think it is Fidelity's responsibility; I think it is the investment manager that I pay 1% to's responsibility. The investment manager is blaming it on Fidelity.

You are right, it might be a loss, but it is cheaper to just pay the tax then file for extensions; especially when I might never get the right numbers.

"Confused" wrote

If you bought and sold the investment through the investment manager, then they should be able to help you with that.

If however, you bought that stock from another source, inherited it, whatever, and transfered those shares to the investment advisor, then the basis info is on you to provide.

All went through the IM, and I certainly agree they should be able to; but they can't. So the issue is what do I do about it. My inclination is to just pay the $10 in tax and call it a night, as long as the IRS won't care. I mean; I can't have a negative basis can I, so it ought to be okay.

The IM swears they are doing everything they can, but it just doesn't seem that tough. Does it?

Investor relations at the company of the stock may be able to provide this info.

that tough. Does it?

Whatever it was that got sold had to appear in the account sometime. The paper trail should answer how it came to be and at what cost. It really is pretty simple. I'm just taking your work the adviser is clueless. Unless he's earning his keep otherwise, this issue raises a red flag.

But if it came from an acquisition, the purchase date and cost basis comes from the holding in the original company that was acquired. At the time of the acquisition you should have received a letter explaining how to convert the cost basis of the old holding to the new one.

Exactly. It's only when I fail to update my basis for a spin off/takeover etc, that I'd get surprised when the next event occurs. If the adviser was there all along he should have the paper trail.

At 1pm the adviser told me it was impossible and he considered the matter closed. I printed out my returns and spent $25 making copies of everything. When I got home he called and said they had spent some time recreating the paper trail and now have the answer. So I get to throw it all out and start over. I may just cry.

Just be sure that the extra income does not increase your tax dramatically. For example, say your AGI is 79,951, so you get to take a tuition and fees deduction of $2000, saving you about 25% or $500 in tax. But once you add $50 of income, your AGI becomes 80,001 and you no longer get to take the tuition and fees deduction -- and thus you're paying $510 more in taxes.

paper trail and now have the answer.

I would just ignore what the IM found out if the amount is insignificant. I also get tied in knots about these kinds of things, but intellectually I know it's not worth it.

paper trail and now have the answer.

Short of changing advisers, I'd ask, maybe next week, for a listing of the cost basis of all assets in my accounts. If he can't produce that, I'd offer an ultimatum, and suggest that once was enough. This is one of the reasons I like to wait till the last day to print my taxes. Even if I think I'm 100%, there's the chance some updated 1099 or other form shows up. Or the Missus finds a charity receipt.

Excellent advice! I asked for such a list and he says he will get it together. We will see. Thanks.