Capital Gains From Brokerage "Covered Shares"

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Leesbro63
Posts: 6645
Joined: Mon Nov 08, 2010 4:36 pm

Capital Gains From Brokerage "Covered Shares"

Post by Leesbro63 » 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?

nalor511
Posts: 793
Joined: Mon Jul 27, 2015 1:00 am

Re: Capital Gains From Brokerage "Covered Shares"

Post by nalor511 » Tue May 19, 2020 3:38 pm

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.

kaneohe
Posts: 6536
Joined: Mon Sep 22, 2008 12:38 pm

Re: Capital Gains From Brokerage "Covered Shares"

Post by kaneohe » Tue May 19, 2020 4:22 pm

you might want to keep documents to make sure the broker is right.

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