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Capital Gains From Brokerage "Covered Shares"

Posted: Tue May 19, 2020 3:36 pm
by Leesbro63
I'm breaking this out from another thread. What's required to prove capital gains for (brokerage) "covered shares"? Does the IRS require taxpayers to keep purchase documents and other basis adjustments, or, since 2012 (or was it 2010 or '11), when brokerages became required to track basis, is that enough? Is Form 1099-B enough to prove capital gains for "covered shares" or must taxpayers keep other records too?

Re: Capital Gains From Brokerage "Covered Shares"

Posted: Tue May 19, 2020 3:38 pm
by nalor511
Leesbro63 wrote:
Tue May 19, 2020 3:36 pm
I'm breaking this out from another thread. What's required to prove capital gains for (brokerage) "covered shares"? Does the IRS require taxpayers to keep purchase documents and other basis adjustments, or, since 2012 (or was it 2010 or '11), when brokerages became required to track basis, is that enough? Is Form 1099-B enough to prove capital gains for "covered shares" or must taxpayers keep other records too?
It's "enough" that 1099-b states it, BUT, I still download statements from my brokerage just in case I ever have to justify anything. For most things there will never be a question, but if there is, you (I) definitely want to be able to answer it to the IRS's satisfaction.

Re: Capital Gains From Brokerage "Covered Shares"

Posted: Tue May 19, 2020 4:22 pm
by kaneohe
you might want to keep documents to make sure the broker is right.