Still need confirmation for pre-2012 cost basis?

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Still need confirmation for pre-2012 cost basis?

Postby jefmafnl » Fri Dec 28, 2012 12:02 pm

Just went to exchange funds in a taxable account and discovered that the purchase dates for shares acquired pre-2012 will be listed as "various" on the Vanguard confirmation.

For specific share ID, is it still necessary to send Vanguard a secure e-mail with the purchase info, so that they can send a confirming letter, just like in the bad old days?

J
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Re: Still need confirmation for pre-2012 cost basis?

Postby livesoft » Fri Dec 28, 2012 12:03 pm

Only if you are audited. Consult your tax advisor. And if you are using FIFO (a form of specific ID), there is no need to send a letter.
It's all about short-term opportunistic rebalancing due to a short-term change in one's asset allocation, uh, I mean opportunistic rebalancing, uh I mean rebalancing, uh I mean market timing.
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Re: Still need confirmation for pre-2012 cost basis?

Postby FinancialDave » Fri Dec 28, 2012 5:34 pm

jefmafnl wrote:Just went to exchange funds in a taxable account and discovered that the purchase dates for shares acquired pre-2012 will be listed as "various" on the Vanguard confirmation.

For specific share ID, is it still necessary to send Vanguard a secure e-mail with the purchase info, so that they can send a confirming letter, just like in the bad old days?

J


Two questions come to mind here:

1. Have you sent Vanguard a form to indicate which cost basis method you are using?

2. Have you always used the same cost basis method in the past when selling shares?

Also remember if you are selling mutual fund shares purchased before 2012, Vanguard has no obligation to provide the cost information to you, as these are what the IRS calls non-covered shares and no reporting of cost basis information by the broker is required.

fd
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Re: Still need confirmation for pre-2012 cost basis?

Postby jefmafnl » Sat Dec 29, 2012 7:52 am

1 Website says: for fund for which I hadn't (since the advent of the new regulations) changed my account profile to Specific Share ID,
transaction will be processed as FIFO, but I should call before end of following business day to specify shares. However, since these
shares were purchased pre-2012, they're in the same situation as shares in another account for which I had changed my profile:
" various" will be indicated as date. Phone lines were busy; tried to secure e-mail but there's a new message saying no secure
e-mails during business hours. So will send the e-mail on Sunday.

2 Yes, I've always used specific share ID.

J
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