Noncovered shares - mutual fund

[FinallyInSeattle]

I have 2 mutual funds that I've had "forever", so most of the shares are noncovered.  Vanguard provides an average cost per share for the noncovered shares.  Can that be used for reporting?  TIA

[rjs · Accepted solution]

Yes, you can use the average cost that Vanguard calculates as the cost that you report on your tax return. For the acquisition date you can enter "Various."

Once you use average cost for a mutual fund, you must continue to use average cost for all sales of shares in that fund. Vanguard will continue to calculate it that way.

[rjs]

This information on the Vanguard web site might be of interest, if you have not already seen it.

Average cost method