VG told us they only have stock/bond records back to 2012. I must be naive, but how do they know what we bought stock funds at - going back to late 90's? And how do they keep track with 401K purchases before that? How do we know what's FIFO LIFO?
Seriously? Do people really do that? My birth certificate paper is so yellowed you can hardly read it.When you started filing tax returns in your teens, you read the instructions and followed the directions. Those instructions pretty much said, "Keep all your annual statements in a safe place forever." So you have been doing that and just need to consult those records and you are all set.
Yeah. Old stock certs are still good. As is a yellow birth cert.Seriously? Do people really do that? My birth certificate paper is so yellowed you can hardly read it.
Seriously? Do people really do that? My birth certificate paper is so yellowed you can hardly read it.
Seriously? Do people really do that? My birth certificate paper is so yellowed you can hardly read it.
No, most people really do not do that. ...
Since the pre-2012 transactions are not reported to the IRS, the extremely high likelihood is that it is never going to come up as an issue. Don't sweat it.
Second, require everyone to report their holdings and purchase price every year. At least then, you would only need to go to last years tax form to find the info.
Seriously? Do people really do that? My birth certificate paper is so yellowed you can hardly read it.
We've been re investing all these years. Every gain is re invested. Have not WD. How in the world could anyone keep track of that?
We've been re investing all these years. Every gain is re invested. Have not WD. How in the world could anyone keep track of that?
We've been re investing all these years. Every gain is re invested. Have not WD. How in the world could anyone keep track of that?
There is a very good chance we have those. Thank you for that!Easy. Put a copy of your annual statement with your saved tax return each year.
In the pre-Internet, pre-Personal Computer days, Vanguard always sent a paper annual statement. I even think they already had the 3 holes punched in them to put in your ring binder.
We've been re investing all these years. Every gain is re invested. Have not WD. How in the world could anyone keep track of that?
I would be surprised if Vanguard reports that cost basis to the IRS at all. They will report it to you, but the cost basis of non-covered shares is not required to be reported to the IRS.[...]
The nice thing is that I was able to enter my conclusion of the cost basis in Vanguard's DB that will be what they use for those funds when they report to IRS. Everything after that they calculate as required by law.
I would be surprised if Vanguard reports that cost basis to the IRS at all. They will report it to you, but the cost basis of non-covered shares is not required to be reported to the IRS.
I know for a fact that Vanguard knows accurately the cost basis of the shares I have with them, but they have never reported the cost basis to the IRS when I have sold shares. Vanguard tells me the cost basis, but does not tell the IRS.
This is all explained really well in the IRS instructions to the tax forms, too.