Simplified Method for pension when cost not known

[hebbeng41]

What to do when customers do not know their costs? Example - 79 year old person receiving long-deceased spouse's pension. Does not have any idea about costs, doesn't even know what "costs" means, and has no way of finding out. Couldn't even begin a telephone call, and has no computer.
Is it ok to just go ahead with the old method?
GH

[FEDUKE404]

OLD method?

What to do when customers do not know their costs? Example - 79 year old person receiving long-deceased spouse's pension. Does not have any idea about costs, doesn't even know what "costs" means, and has no way of finding out. Couldn't even begin a telephone call, and has no computer.
Is it ok to just go ahead with the old method?
GH

Say what? ? ? ?

It's either all taxable or (somewhat) partially taxable from the gitgo (based upon original costs and age of recipient[s]).

What has this 79 YOA person been doing the last twenty years or so with the pension income? ?

FE

[Burke]

Cost is shown on 1099R, in box for employee contributions. (Unrecaptured costs remaining when primary recipient died would carry over to spouse.) If none is shown, then it has probably all been recovered, and is all taxable. If none are shown on 1099R, report as fully taxable.

[hebbeng41]

what doing with pension.

Say what? ? ? ?

It's either all taxable or (somewhat) partially taxable from the gitgo (based upon original costs and age of recipient[s]).

What has this 79 YOA person been doing the last twenty years or so with the pension income? ?

FE

Maybe she was spending it to support herself?

[hebbeng41]

Costs simplified method

Cost is shown on 1099R, in box for employee contributions. (Unrecaptured costs remaining when primary recipient died would carry over to spouse.) If none is shown, then it has probably all been recovered, and is all taxable. If none are shown on 1099R, report as fully taxable.

THANK YOU!!! the only person so far with an answer!! and so simple.

[taxmom34]

looks like you are new to TTB and already attacking . I took your last two postings as sarcastic and uncalled for.