1099-B, box 5, how to figure out cost basis?

Asked by: Lamar Wingfield

Where can I find my cost basis on 1099-B?

Step 2: Locate your cost basis information on your Substitute Form 1099-B. The cost basis will be under the column for Box 1e. Short-term transaction for which basis is not reported to the IRS; report on Form 8949, Part I, with Box B checked.

What if there is no cost basis on 1099-B?

Should I leave it blank? No, The cost basis is the amount that you paid for the investment. If you leave it blank you will be taxed on 100% of the proceeds.

What if I can’t find my cost basis?

First of all, you should really dig through all your records to try and find the brokerage statements that have your actual cost basis. Try the brokerage firm’s website to see if they have that data or call them to see if it can be provided.

What is Box 5 on Form 1099-B?

Box 5 means that your sale was for a non-covered security. In these cases, the broker is not required to provide you certain information. However, you have to acquire this information as it is needed to calculate the gain or loss and determine the classification of the gain or loss.

How does the IRS know your cost basis?

You usually get this information on the confirmation statement that the broker sends you after you have purchased a security. You—the taxpayer—are responsible for reporting your cost basis information accurately to the IRS. You do this in most cases by filling out Form 8949.

How do you find the basis?

In most situations, the basis of an asset is its cost to you. The cost is the amount you pay for it in cash, debt obligations, and other property or services. Cost includes sales tax and other expenses connected with the purchase. Your basis in some assets isn’t determined by the cost to you.

Why is my cost basis 0?

Yes, if you are certain you didn’t pay anything for these shares, then you can enter “0” as the Cost Basis. Before doing this, check with your employer’s payroll department and make sure that the company did not include any “cost” for these shares in your taxable income (Box 1 of your Form W-2).