Chase YouInvest cost basis method

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SlowMovingInvestor
Posts: 1823
Joined: Sun Sep 11, 2016 11:27 am

Re: Chase YouInvest cost basis method

Post by SlowMovingInvestor »

Has anyone received a 1099-B from Chase for sales/purchases made in the year ? Or 1099-Divs for that matter ? Just curious how well 1099 reporting is working for YouInvest (this is one of my major concerns with a new brokerage).
maracle
Posts: 4
Joined: Tue Jan 31, 2017 4:45 pm

Re: Chase YouInvest cost basis method

Post by maracle »

For the record currently it seems you can apply the accounting change retroactively if the account was opened within a year and no sales have occurred. This makes some sense since once a sale occurs under average cost you can't identify the tax lots anymore. On the other hand it would be nice if that applied to specific positions and not to the entire account. Here's the info I got from Chase:
The default Cost Basis method for this account is Average.
When reporting basis using the Average method, the IRS
requires that lots be sold First In First Out (FIFO).
While the system will sometimes allow you to select
specific lots to comply with the IRS regulations, the
system actually sells FIFO.
We are able to change the Cost Reporting method from
Average Cost to Original Cost. However, this reporting
method update will only apply to shares that are purchased
following the change, and will not apply to shares already
held in the account.
If you would like to update the reporting method for your
account(s), please reply back to this message confirming
the following:
1. The last four digits of the account(s) for
which you would like to change the Cost Basis method
2. Please specifically state that you want the
Default Cost Basis method changed to Original Cost for the
account.
3. You can also choose from one of the
following default liquidation options:
i. FIFO - This is the default method when you
switch the account to Original Cost.
ii. LIFO
iii. High Cost
iv. Low Cost
v. Long Term High Cost
Please note, the Cost Basis method can be changed
retroactively for accounts that have been open less than a
year if adjusted prior to the first sell. If you do not
request that the Cost Basis be updated retroactively, the
change will be applied to future positions only.
Also when I looked earlier today it had a greyed out option for tax lots on an ETF but nothing on the mutual fund I'm holding. So I think it's likely that even after the change I won't be able to sell my mutual fund position which has a decent loss.
ma21n2
Posts: 145
Joined: Fri Sep 28, 2018 9:25 pm

Re: Chase YouInvest cost basis method

Post by ma21n2 »

SlowMovingInvestor wrote: Sat Feb 08, 2020 9:36 pm Has anyone received a 1099-B from Chase for sales/purchases made in the year ? Or 1099-Divs for that matter ? Just curious how well 1099 reporting is working for YouInvest (this is one of my major concerns with a new brokerage).
I received 1099-DIV and it was fine. I think it was made available online a day or two after Merrill Edge made it available. I only had some tax exempt dividends from VTEB, and it was reported correctly as tax exempt.
SlowMovingInvestor
Posts: 1823
Joined: Sun Sep 11, 2016 11:27 am

Re: Chase YouInvest cost basis method

Post by SlowMovingInvestor »

ma21n2 wrote: Fri Feb 28, 2020 6:44 pm
SlowMovingInvestor wrote: Sat Feb 08, 2020 9:36 pm Has anyone received a 1099-B from Chase for sales/purchases made in the year ? Or 1099-Divs for that matter ? Just curious how well 1099 reporting is working for YouInvest (this is one of my major concerns with a new brokerage).
I received 1099-DIV and it was fine. I think it was made available online a day or two after Merrill Edge made it available. I only had some tax exempt dividends from VTEB, and it was reported correctly as tax exempt.
Thanks.

Anyone have any comments on 1099-Bs from YouInvest ?
new_bogler
Posts: 4
Joined: Sat Feb 02, 2019 10:03 pm

Re: Chase YouInvest cost basis method

Post by new_bogler »

maracle wrote: Fri Feb 28, 2020 6:18 pm For the record currently it seems you can apply the accounting change retroactively if the account was opened within a year and no sales have occurred. This makes some sense since once a sale occurs under average cost you can't identify the tax lots anymore. On the other hand it would be nice if that applied to specific positions and not to the entire account. Here's the info I got from Chase:
The default Cost Basis method for this account is Average.
When reporting basis using the Average method, the IRS
requires that lots be sold First In First Out (FIFO).
While the system will sometimes allow you to select
specific lots to comply with the IRS regulations, the
system actually sells FIFO.
We are able to change the Cost Reporting method from
Average Cost to Original Cost. However, this reporting
method update will only apply to shares that are purchased
following the change, and will not apply to shares already
held in the account.
If you would like to update the reporting method for your
account(s), please reply back to this message confirming
the following:
1. The last four digits of the account(s) for
which you would like to change the Cost Basis method
2. Please specifically state that you want the
Default Cost Basis method changed to Original Cost for the
account.
3. You can also choose from one of the
following default liquidation options:
i. FIFO - This is the default method when you
switch the account to Original Cost.
ii. LIFO
iii. High Cost
iv. Low Cost
v. Long Term High Cost
Please note, the Cost Basis method can be changed
retroactively for accounts that have been open less than a
year if adjusted prior to the first sell. If you do not
request that the Cost Basis be updated retroactively, the
change will be applied to future positions only.
Also when I looked earlier today it had a greyed out option for tax lots on an ETF but nothing on the mutual fund I'm holding. So I think it's likely that even after the change I won't be able to sell my mutual fund position which has a decent loss.
I received the same message from Chase as above.
I am a bit confused about the liquidation options. How is FIFO the default option for Original Cost? Isn’t the whole purpose of choosing original cost holding method is to sell specific lots at the original cost? What option would one choose for liquidation so that the original cost of that lot is reported as cost basis. So confusing..
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