Author Topic: Do you know non covered returns how do you handle them?  (Read 1323 times)

BTDretire

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Do you know non covered returns how do you handle them?
« on: February 18, 2020, 08:38:53 AM »
I just got off the the phone with Vanguard, reviewing my 1099.
I sold $100k+ of VTSAX. I have held it a long time, how long, I don't know.
 But I was told be the Vanguard rep the the cost basis does not include not cover shares. So how do I know my true cost basis?
I'm sure a few of you have all that documented, but most just used the numbers on the 1099 and paid your taxes accordingly.
  Can I get a little discussion on that? I don't know how to handle it.

bacchi

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Re: Do you know non covered returns how do you handle them?
« Reply #1 on: February 18, 2020, 03:44:29 PM »
You really need to find your past statements. Even knowing when you bought the shares will help.

When the IRS sees non-covered shares, they assume the worst, which is a cost basis of $0. The entire sale will be taxed at 15%.

BTDretire

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Re: Do you know non covered returns how do you handle them?
« Reply #2 on: February 18, 2020, 05:16:06 PM »
 After a second long phone call with a Vanguard rep, I found that the cost basis on my sale of VTSAX does reflect all my purchases back to 2006, even though they aren't covered from 2006 to 2012. The cost basis on my 1099 is a correct number that reflects purchases back to my first purchase in 2006.
  Relief! I did not want to crawl in the attic and go through 14 years of paperwork to find all my purchases in that account.
 So, I expect to have about $24k of other income, just enough to fill our standard $24k deduction. Then my total VTSAX withdrawal minus the cost comes to $78,872.
 So I over shot staying in the 0% tax bracket by about $97.
 The mistake I made was not making any Roth conversions in the 12% tax bracket.

Thanks for the scare to get me motivated to get all the info I needed.
« Last Edit: February 18, 2020, 05:22:17 PM by BTDretire »

bacchi

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Re: Do you know non covered returns how do you handle them?
« Reply #3 on: February 19, 2020, 01:48:21 PM »
It's good to know that Vanguard keeps that old data around.

I did have to track down some old statements when I transferred shares to Vanguard. What a PITA. Worse was that the IRS computer flagged it and we went back and forth a few times until they accepted my old statements.

BTDretire

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Re: Do you know non covered returns how do you handle them?
« Reply #4 on: February 19, 2020, 04:22:06 PM »
In case someone wants to see old data at Vanguard.

Log in
Go to 'My accounts'
Click 'Select Account' and pick the one your interested in.
Open the box to that says '1 year' and change it to 'Custom'
When the box pops up,
enter the oldest date that you think you may have had activity.
and also the latest date you want to see. (today's date?)

It says it goes back to 1993, I only tested it back to 2006.