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I need help figuring out the average cost basis on a bond…

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I need help figuring...

I need help figuring out the average cost basis on a bond mutual fund.

Accountant's Assistant: The Accountant will know how to help. Please tell me more, so we can help you best.

I sold shares from a bond fund that I inherited and need to report the sale on my 2017 tax return.

Accountant's Assistant: Is there anything else the Accountant should be aware of?

No.....just that average cost basis was the method of tax accounting selected by me for the capital gains tax.

Submitted: 1 month ago.Category: Tax
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Answered in 2 hours by:
3/8/2018
Tax Professional: Gerald, Esq, Attorney replied 1 month ago
Gerald, Esq
Gerald, Esq, Attorney
Category: Tax
Satisfied Customers: 5,107
Experience: Over 30 years of experience.
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Hello,
Thank you for using Just Answer. Please bear with me while I review your question. I will respond fully shortly. Thank you for your patience.

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Tax Professional: Gerald, Esq, Attorney replied 1 month ago

Hello,

Thank you for your patience and thank you for using Just Answer. I want to provide you the best service I can. Please feel free to ask any follow-up questions you have.

I am an attorney with 30 years of experience; I hope to provide you information that will help you in resolving your question.

If you inherited the fund then you get a "Stepped Up Basis." That means that your Basis in the fund is the value of the Fund on the date of the death of the person that you inherited from. You do not need to use an average cost basis, because your basis is not averaged over time. You have a set basis.

Contact the Fund manager an ask them for a letter stating the value of the fund on the datee oof death OR you may be able to research the funds value online as of that date.

On your return you will use "Actual Basis."

I hope the information I provide is useful to you. I want you to be comfortable and satisfied with my attempt to assist you. Please, if you have ANY follow-up questions, feel free to ask.

If you ask a follow-up question and I do not respond immediately, it is because I am temporarily unavailable. I promise to respond as soon as I return. Please note that I am often unavailable Friday evening through Sunday.

Please do not forget to give me a positive rating. It adds nothing to your costs but helps me greatly. Thank you.

If you are dissatisfied with my response, PLEASE let me know before giving me a negative review so that I may try to be of better assistance. Or, if you prefer, let me know and I can “Opt Out” and your question can be re-posted without additional cost to you. I will be fair to you, and only ask the same from you.

Good luck.

Please note: Information is educational and not given as legal advice. Only your local attorney can give legal advice. I can't establish or accept an attorney-client relationship with you. All posts are available for public viewing.

Kind regards,

Gerald

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