Vanguard will almost certainly provide the average basis of the non-covered shares that are sold.If they do my problem is solved. I assumed - based on the disclaimer - they won't report it on 1099 and I will have to figure it out myself.
The sentence in the opening post of "If I used the average cost, Vanguard would calculate the numbers for me, but I haven't." indicates that you have previously sold shares of the funds but did not use the average basis provided by Vanguard with those sales. If you have previously sold non-covered shares of a Vanguard fund but did not use average basis on the income tax return, then the average basis reported to you by Vanguard for later sales of the same fund will likely be the wrong value to use as the basis.
Unless the IRS decides to audit the return, they will not know that the basis you report on an income tax return for non-covered shares is wrong. If on previous income tax returns you had used the average basis reported to you by Vanguard, then an IRS auditor would very likely accept what Vanguard reported to you as the average basis as being correct without you having to produce a complete transaction history of the non-covered shares.
Statistics: Posted by FactualFran — Tue Jan 23, 2024 11:47 pm — Replies 15 — Views 713