Tax question: stock cost basis

[moneymom]

I'm completing my own taxes and have a question:

I sold stock last year and do not have the cost basis for it.  It's impossible for me to get.  It was purchased in many many lots over a 10 year period and it was about 20 years ago and there's no records for it.  How do I proceed in the most cautious manner?  I almost don't care at all how much money I lose just to get this over with legally.  Should I just find the lowest stock price over the last 20 years and put that to be safe?  

FWIW, I've been having this issue for years since I've been slowly selling the stock.  I previously had a tax prep company do my taxes and I told the preparer my issue and I'm not sure how he came up with his numbers and resolved it.  

[rangerj]

The cost basis of an item sold is an expense deducted against the selling price used to get to the gain or loss. The burden of proof with respect to any deduction is on you the taxpayer. If you can REASONABLY reconstruct the cost basis, say using the lowest price that the stock sold for in the last 20 years, the government may accept that should you be audited. If you cannot reasonably reconstruct the cost basis then use zero.

[moneymom]

Mar 7, 2015 11:02:13 GMT -5 rangerj said:

The cost basis of an item sold is an expense deducted against the selling price used to get to the gain or loss. The burden of proof with respect to any deduction is on you the taxpayer. If you can REASONABLY reconstruct the cost basis, say using the lowest price that the stock sold for in the last 20 years, the government may accept that should you be audited. If you cannot reasonably reconstruct the cost basis then use zero.

Thank you!  

[ken a.k.a OMK]

I sold some of my mothers Fidelity stock per her request. We got a 1099B which showed the capital gains.

[Deleted]

Mar 7, 2015 11:02:13 GMT -5 rangerj said:

The cost basis of an item sold is an expense deducted against the selling price used to get to the gain or loss. The burden of proof with respect to any deduction is on you the taxpayer. If you can REASONABLY reconstruct the cost basis, say using the lowest price that the stock sold for in the last 20 years, the government may accept that should you be audited. If you cannot reasonably reconstruct the cost basis then use zero.

I tried to do this last year using TT. Dh's ex got the stock in the divorce a couple of decades, but somehow there was a fraction leftover or something. Maybe it was a DRIP. Anyway, the company was acquired, and the fraction was sold for $8.71. We got whatever the form is for tax purposes, but no cost basis.

TT would not let me enter $0. So I entered $1, and it took it.

We'll just hope that it cost more than a $1 if we ever get audited.   It really was more than a nuisance than anything else.  We had to account for it somehow, but it wasn't worth hiring a tax preparer to figure out how.

I figured if we got audited over that (LOL), I'd offer to input the value at $0 . . . if the IRS would let me.