All Things Tax

All Things Tax

Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.

Posts: 1
Registered: ‎03-13-2018

1099 DIV reduce cost or cost basis adjustment

Advise from Fed return is "Box 3 on Form 1099-DIV is a nontaxable return of cost. Please reduce your cost or other basis by this amount. If your basis is zero, this should be treated as capital gains."


My1099Div is for a Managed Brokerage Account  which has multiple stocks which my broker buys and sells. How do you determine what is your basis is and keep track of that every year if one stock could've been part or your portfolio one year (get the dividends that the 1099DIV is reporting) and then gone the next year?  Is the cost basis entered in the software, If so where?  Rr should I just track it in my personal records?


The advise indicates I can reduce my cost as an alternative. Where is this entered?