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Re: gains and dividend reinvestment
Old 05-12-2006, 05:26 PM   #21
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Re: gains and dividend reinvestment

2B - the IRS accepts average price (commonly tracked and provided by your brokerage house) or lot price.* Schawb provides average price* for me online, average price and lot price in a separate gain-loss report mailed quarterly and average price on the year end 1099.* I use average price as it's simplist.* Once you use average price, you must stick with it for that fund.* I just flipped open the instructions for Schedule D and it's all there for you're reading pleasure.* *:P

That doesn't help for your situation with your FIL however.* I suggest you contact the brokerage house holding the fund shares and ask if they can help you calculate the basis.* They likely can.* If not, you could get some historical share price information and swag it in.* Since it's a small amount of money and you'd use reasonable assumptions, your probability of IRS problems are minimal.* (And if you do get audited and locked up, I have no idea who you are and will deny writing this.)* Or, you do the worse case scenario and assume the basis is zero and pay 15% of the whole nut.* *

Good luck!
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Re: gains and dividend reinvestment
Old 05-13-2006, 08:03 AM   #22
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Re: gains and dividend reinvestment

youbet,

His accounts are pretty small. I hope to get him into an assisted living facility soon but I need DW to do the "deed." I'm just the scummy cad that drug her away from his happy home. Of course, he used to change her diapers so what can she know. I'm sure it will get uglier before he gets moved.

Back to the money.... When in assisted living, all of his and MIL's expenses will be deductible as medical expenses on Schedule A. Their expenditures will only be their combined nursing and assisted living expenses -- ~$90K. Their income will be SS, military pension and some minor stuff -- $50K. I'll pull the other $40K out of their assets. Even with a basis of zero, their maximum taxable income will be less than $10K.
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Re: gains and dividend reinvestment
Old 05-13-2006, 08:22 AM   #23
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Re: gains and dividend reinvestment

2B - Figuring the cost basis for FIL's small fund is indeed the least of the worry, that's for sure. It's a tough situation I hope works out as favorably as possibly for you and your wife.
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