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wells fargo advantage funds

my wifes grandmother bought funds a number of years ago in the names of my children with my wife as c/f. I think the initial amount was 500.00. My oldest son sold his share this year for just over 2000.00. How are taxes filed? The 1099-b does not include anything for cost basis. Is this necessary? In addition I don't remember when the fund originated. Again, Is this necessary? The only data on the 1099-b is date of sale, amount of sale, number of shares redeemed and price/share.

Reply to
cbuer
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It was/is your responsibility to maintain cost basis records on the investment. You need to go back over your records to determine when the fund was originally bought and the timing and amount of any additional investments or reinvestments of distributions. You may be able to get this information from the fund directly.

The sale of the fund will be reported on Schedule D on your son's tax return. The gain is taxable. In the absence of any records, the entire sales proceeds will be taxable. With years of reinvestment, it's possible that your son has a loss instead of a gain and can reduce his tax liability. There's no way to know without the historical records.

Reply to
Ira Smilovitz

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