The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: Two Questions about Cost Basis||Date: 8/14/1999 7:30 AM|
|Author: hghcpa||Number: 18169 of 119689|
SWAG method is acceptable in all cases other than an audit.
That may depend to a certain extent on how sharp the revenue agent is.
I dont advise using SWAG method unless there is no alternative.If that return happens to be examined I am under no obligation to notify the examining agent that SWAG exists.
This can be done on the internet (there is a site whose name escapes me that does this-any Fools know it?),
I have a link to that URL on my laptop; I am at home now so I dont know it by heart but I do recall it is on the Yahoo Finance Board.(name of link may be "Yahoo Historical Quotes"). I have used it occassionally but the data appears to be limited. I was trying to find a quote on USOP and due to reverse splits, etc it appeared their data was incorrect.
Let me clarify my recent post on SWAG.A more realistic example would be the use of past issues of Standard and Poors year end stock guides in order to determine cost basis of inherited stock from the 1970's. We have these guides in our library going back for years. If someone knows they inherited a stock in a given year but they did not file any death tax returns we would use those guides which have the 52 wk hi/lo prices in them. We usually suggest to the client to use the average price in that situation. But in many cases, the client may desire to take a more aggressive approach and use the high for the year. Either way ends up being SWAG.
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