> If you obtained stock prior to 2011, and sold it, the IRS has no idea what the cost basis is
Any links to this? Isn't it based on FIFO or LIFO and you just have to be consistent in your approach? Why specifically 2011? Thanks in advance.
Any links to this? Isn't it based on FIFO or LIFO and you just have to be consistent in your approach? Why specifically 2011? Thanks in advance.
As of 2011, your broker does this for you -- and different brokers offer different levels of sophistication in their tracking. Some only offer FIFO and LIFO, others will do more complex optimizations for you.
For purchases before 2011, you need to save info on your purchases lot-by-lot and match them up yourself. This has screwed me several times, when I can't remember when I bought a certain stock and can't put my hands on the appropriate statements at tax time. Royal pain.