Janitor Bob Posted August 21, 2013 Report Share Posted August 21, 2013 OK...never had this before, Client has 1099-B with one entry. Undetermined Term, Non-covered. Gross Proceeds are 1,046.04 with no cost /basis listed. Note states "Principal Payment" what is this and how do I get the cost/basis? the CUSIP (30290A178) is for Canadian Energy and Income Fund (Cash-Fee) that was terminated Quote Link to comment Share on other sites More sharing options...
jklcpa Posted August 21, 2013 Report Share Posted August 21, 2013 It's a return of capital. You report it on the Sch D so you tie in to the 1099-B and generally would use the same amount for the cost basis so there is no gain or loss. You reduce the basis in the investment by the principal amount received. Remember though that you can't reduce basis below zero. As an example, if your client had a basis of $10,000 immediately before this payment, his basis is reduced by the $1046.04 and his new basis is then $8953.96. Quote Link to comment Share on other sites More sharing options...
Janitor Bob Posted August 21, 2013 Author Report Share Posted August 21, 2013 Thanks...from my research, this is what I suspected...I had just never had it before. Client's basis was only slightly more than this distribution and she received the remainder earlier this year when the fund was terminated Quote Link to comment Share on other sites More sharing options...
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