Client purchased stock via payroll deductions during a 10-year period of employment (ending some time ago...not sure when at this point). 2007 1099-B sale of $3711. As you might guess, client has no idea of basis. How can I determine or reconstruct the basis?
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Have the client furnish the records. If the client can't the basis is zero.Originally posted by Zee View Post -
Last time I had one of these, the client contacted the (former) employer and was furnished this information back for quite a number of years. They have it in their records.Originally posted by Zee View PostComment
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Just did one of these
Client was actually buying shares of Ericsson traded on a European stock exchange. All the companies use one of the big brokers to handle these trades. My client contacted Citi and got the info.Comment
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Try this
maybe it will help??????Comment
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My two cents
Certainly the bottom line is that the client must furnish records of basis or we can't claim any. However some assistance on my part seems like good customer service. I have done internet searches to get contact numbers of companies. I have allowed clients to call and ask the person on the other end to deal with me. I have even written letters for the client to sign. Naturally all of these things result in a time charge over and above the forms charge, but clients appreciate it. I am willing to be under priced but I will not be beaten on diligence or customer service.Originally posted by Larmil View PostComment
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There are many places where you can go for stock prices if you know the exact date and time of the transaction. The problem is that wherever you find that you also generally find the price. Remember that because stock prices are so volatile, estimation is not acceptable.Originally posted by Redneck View PostComment
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My clients usually
glance up at the ceiling to find these "difficult" numbers.Originally posted by Zee View Post
Seriously though -- contacting the fiduciary for forms 5498 should not be that much of a problem -- and as noted by other folks, a LOT of this is online. Once I impress on them that the IRS will tax them on the total sale listed on the 1099-B [instead of the proper amount of gain/loss] they are eager to get the information. And, your client has plenty of time now to obtain this information.Just because I look dumb does not mean I am not.Comment
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If the client is in the 5% cap gain bracket they may not consider it worth the time and expense to get 10 years worth of records. It is the client's choice.Originally posted by erchess View PostComment
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Why not estimate the basis?
OK. If there are no records available, it's been suggested that the basis used should be zero. My understanding was the IRS would accept a reasonable estimate. This situation is insignificant, even if a zero basis is used the tax on a $4000 long-term gain is small.
However, since these were purchased via payroll deductions, it will be very difficult to reconstruct the actual basis. At a minimum, why not use the lowest trading price during the years purchased? How could the IRS dispute the reasonableness?Comment
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I use this all the time. However, it won't help in this case unless the client has all his records of purchase dates and amts. That is the problem. This was a payroll deduction plan over a number of years. If the client does not have the purchase records, the only place to get them is the employer or plan administrator.Originally posted by erchess View PostComment
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Could be a loss
It might also produce a loss rather than a gain. I would have the client go to the Administrator of the plan at the old employer and request a print out. What about splits?
Wal-Mart is an example, and I keep the clients year end report in file, and advise the clients to keep as well. Of course most client conveniently forget where it is or what it is.
SandyComment
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