did Vanguard record the step-up in basis?

[ocean view]

I was talking with my mom last night and she told me that when my father passed away 18 yrs ago that Vanguard would not record the step-up in basis. VG told her that she would have to track it. So now every year she gets a 1099 from VG that has an incorrect cap gain figure, which her tax accountant has to manually correct. She said that Merrill Lynch was able to update her accounts without issue, but not VG. Anyone else have this experience with VG? I'm thinking perhaps their systems are more robust today and perhaps today it would be possible, where in 1999 is was not.

She said that they had several VG & ML accounts held in a revocable trust, both mom & dad were trustees. Mom is now the sole trustee.

I'd sure like to get this straightened out for her if possible.

 

[gerntz]

If the funds/stocks are still owned by the same entity; i.e., the same trust, I could see a problem.

So perhaps move the assets to another account.

Were the ML accounts in the same trust?

 

[ocean view]

If the funds/stocks are still owned by the same entity; i.e., the same trust, I could see a problem.

So perhaps move the assets to another account.

Were the ML accounts in the same trust?

Yes, the ML accounts were in the same trust as the VG accounts.

 

[LOL!]

Financial institutions were not required to track cost basis until about 2012 or so, so Vanguard never really reported cost basis of anything to the IRS until tax year 2012, but only for shares purchased after then.

And if one looks at a 1099-B and the IRS forms for reporting that info, even if the 1099-B has a cost basis, you got your Form 8949 codes A, B, C, D, E, and F that deals with all this.

And even places that kept great track of cost basis and told you what it was didn't report it to the IRS (codes B and E).

 

[ocean view]

Thanks, I'll pass this info on to Mom.