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[Toofuzzy]

HI eric4x

I worked as a tax preparer for 16 years and just quit last year. I volunteered doing taxes this year.

You asked a VERY specific question and I answered it accurately, but then you ask a series of questions like I didn't give you full information when I did.

The answer to ALL tax questions is " it depends " so go ask someone about your specific issue but how much are you willing to pay them for an hour of their time?

Reguarding your first question. RECENTLY, the last few years brokers report or provide cost basis. If you have been with a broker since you bought a security they MAY be able to provide information further back. It was ALWAYS your personal responsibility to keep track and report to the IRS your cost basis. ( I keep each years brokerage statements with each years taxes and have a running paper record of when all shares are bought so I know what year to look for if auditted)

As I told my clients " You are telling me you have no idea if you are making a profit on this sale or not "

So again regarding your very stupid relatives, they were sent an annual accounting of the shares they bought and when. It would have been really nice if they kept those. But even if they did it is a pain to add up the cost of monthly purchases over 20 or more years, and the reinvested dividends may have had taxes paid on them if in a taxable account, then you have to adjust the cost basis for any shares sold. Then you complain about what your tax preparer charges you to figure all this out because you are clueless as to how to do it yourself.

Do you wonder why I retired yet from a job I was able to live on working 3 months per year?

The shares they were given have a cost basis of zero. The shares they bought have a cost basis of what they paid. The reinvested dividends have a cost basis INCREASED by the tax they already paid ( did they save EVERY prior year tax return? )

The cost of stupidity is paying tax on a cost basis of zero since you don't even know when the shares were bought to guess a cost.

Now if your relatives past away, all the problems go away as it becomes part of the estate and will either get sold or get stepped up cost basis at date of death ( which would again be nice if my clients kept track of the value at death and date )

So is that enough detail?

If not go pay someone for a better more detailed answer.

Sorry for the snarky answer. Have a nice day.

Not always
Toofuzzy