Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Figuring out your cost basis is the responsibility of the taxpayer not the mutual fund or brokerage firm. They probably can help you with the relatively recent history (say around 5-7 years). For something like you requested I would expect that there were some loud howls of laughter in the background. Putting off an unpleasant task does not make it any easier when you finally do take it on.

Thanks for the reality check. Yes, they probably did laugh at the thought of doing this work for me.

Some may disagree with using a zero cost basis. They may tell you to push the envelope as far as you can. IOW, make up some number for your cost basis in order to reduce your tax bill. The only problem with that is that the burden of proof is on you. If your transaction raises a flag or you get audited, you will have to bring in physical evidence backing up your claim. If you do not have anything to support your story, you will be in much deeper doo doo than you would just using the zero cost basis.

Won't the IRS think it's reasonable that SOMETHING more than zero was paid, even if it's an estimate?

Is there some way I can find the share price of NGUAX in 1970, and maybe even a record of the annual distributions? That would put me on the road to finding a more-than-zero cost basis.
I'll call them.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.