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Financial Planning / Tax Strategies


Subject:  Re: Two Questions about Cost Basis Date:  8/14/1999  4:23 PM
Author:  Bob78164 Number:  18172 of 127513

edcosoft writes (in part):

If you remember the price, and can't verify it, how can the IRS refute it?

I reply:

My understanding is that the IRS need not refute it, because the burden is on the taxpayer to prove cost basis. If, upon audit, he/she can't, the cost basis is deemed to be $0. Having said that, I think the taxpayer can honestly and legitimately claim the cost basis as long as he/she is comfortable with the accuracy of the numbers. Just be prepared to lose if audited. --Bob
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