Any tax experts here?

I've already filed using Turbo Tax and was surprised when I received a 1099B form yesterday. It seems I completely forgot I sold some stock early last year. This is stock in our local power company and I send them so much money each month just for this. So, I now need to file an amended return which I can do but I am totally confused as to how to determine the cost of the stock I sold since it's cost varies a lot month to month when I buy it. Do I just average the cost?

Re: Any tax experts here?

Last year I got tax documents literally up until the tax deadline. Some years I've gotten restated tax documents well after the tax deadline.

Re: Any tax experts here?

You'll have to do some investigating to discover the cost per share,number of shares, and date purchased of all shares. This will result in you having either long term or short term sales or both.

Does the Power Company have this information of your purchases? If not, it's time to dig up your records.

I'm not a tax expert and I also utilize Turbo Tax.

Re: Any tax experts here?

If you use the sch D work sheet it will ask you the dates bought and sold and take the numbers to the correct place. If you sold all of that stock it will not be a problem. You can get the dates and amounts from the company. If you didnt sell all the stocks you will need to decide what shares you did sell. You need to establish a method of inventory. A common one is FIFO when you sell a share it is considered the first one you bought for tax reasons. FIFO and LIfO first in first out and Last in etc. If the holding period is less than the time required for long term gains just add up all the costs and you have your basis. If you were selling and rebuying the same stock you will need to research wash sale.

Re: Any tax experts here?

You can research your cost basis here. Not sure how you deal with the monthly purchase issue, though.

EDIT: If you can figure out the total you put in over the years, that's your cost basis. Subtract that from the gross proceeds from the sale to get your profit (or loss).

Re: Any tax experts here?

Your 1099B should have all the information needed to report a stock sale, be sure to look at the 'new' Form 8949. Thank you Dodd-Fwank. If the government stopped increasing IRS regulations, maybe all the politicians could quit promising to simplify tax forms ...

Re: Any tax experts here?

In Canada you don't need to know the cost per share. You only need to know the total cost of the stock sold and total received when sold. Then you subtract the two and get the capital gain minus any cost like brokerage fees.