I've got an interesting dilema here. In 2010 I exchanged some mutual funds in taxable accounts:
500 index fund -> intl stock = $24k
small cap index fund -> intl stock = $21k
So today I received a letter from the IRS saying my income doesn't match what was reported, it was $45k higher so I ower $16k in taxes and penalties. Ouchie eh.
I've got to go dig up my old returns, but I did find the 1099B that shows those proceeds, but I've also got the average cost summary showing total gains (which I reported) of only about $2k.
Am I crazy in thinking that only the gains are what I pay taxes on here?
Thanks.
500 index fund -> intl stock = $24k
small cap index fund -> intl stock = $21k
So today I received a letter from the IRS saying my income doesn't match what was reported, it was $45k higher so I ower $16k in taxes and penalties. Ouchie eh.
I've got to go dig up my old returns, but I did find the 1099B that shows those proceeds, but I've also got the average cost summary showing total gains (which I reported) of only about $2k.
Am I crazy in thinking that only the gains are what I pay taxes on here?
Thanks.