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04-07-2014, 11:06 PM
 Junior Member Join Date: Apr 2014 Posts: 2
Basic Cost Calculation - Need Your Help

I understand that a nondividend distribution is not considered taxable income until my distribution exceeds my basic in the investment. However, in my situation, I bought 85 LVS on 02/15/2013 (My basic cost was \$4482.75) and already sold all 85 shares in 05/22/2013 for \$5896.94. During these timeframe, I received \$20.53 as nondividend distribution on 4/1/13.
When I file my tax , should the basic cost of 85 shares be calculated as:
Initial basic – nondividend distribution = \$4482.75 – \$20.53 = 4462.22 ??

I really don't know why in my 1099B - Box 3 it listed \$4468.78 was the basic cost. Can you give me some advice?

04-08-2014, 06:55 PM
 Moderator Join Date: Oct 2010 Posts: 5,233
Quote:
 Originally Posted by JPHAM2013 #1;I understand that a nondividend distribution is not considered taxable income until my distribution exceeds my basic in the investment. #2;However, in my situation, I bought 85 LVS on 02/15/2013 (My basic cost was \$4482.75) and already sold all 85 shares in 05/22/2013 for \$5896.94. During these timeframe, I received \$20.53 as nondividend distribution on 4/1/13. When I file my tax , should the basic cost of 85 shares be calculated as: Initial basic – nondividend distribution = \$4482.75 – \$20.53 = 4462.22 ?? #3;I really don't know why in my 1099B - Box 3 it listed \$4468.78 was the basic cost. Can you give me some advice?
#1;correct;it is return of capital so it is not taxable; when you receive this type of distribution, you're considered to be getting back some of the money you invested in the company

#3; The 1099-B reflects all of your profits and losses during the tax year. If you notice an error on your 1099-B, it is best to contact your broker to request a corrected 1099-B. If the broker refuses to submit a corrected 1099-B, notify the Internal Revenue Service that you are disputing the information that appears on the form

04-09-2014, 12:08 AM
 Junior Member Join Date: Apr 2014 Posts: 2

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