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Capital Gains

Jsg1550 — Fri, 10 Apr 2020 18:39:48 GMT

Retired 74 year old started American Funds act in 2003. Last December I sold $10K. American Funds states I cannot use Average Cost because money was tax-deferred. So what do I use as a Cost Basis? How do I determine the cost of these shares when I have held the account for 17 years?

Re: Capital Gains

Anonymous — Fri, 10 Apr 2020 18:49:23 GMT

you need to clarify what you mean by tax deferred. was this a retirement account or an annuity? then what happened?

Re: Capital Gains

Jsg1550 — Fri, 10 Apr 2020 19:59:08 GMT

This is what it states, "Cost basis is not applicable to tax-deferred accounts, including 529 and retirement accounts, or money market funds."

They did email me a year by year account of transactions which contain Dividends and Capital Gains. This goes back from now to 2003. That's like having a road map without a destination. This account was handled by Wells Fargo Advisers. I have asked them for information but, for whatever reason, they have not responded yet. I don't know if they are obligated to provide this information. American Funds said they do not supply this. There should be a simple rule.

Thank you for responding.

Re: Capital Gains

Jsg1550 — Fri, 10 Apr 2020 20:03:25 GMT

(I don't know if I am responding twice but here goes)

This is what it states, "Cost basis is not applicable to tax-deferred accounts, including 529 and retirement accounts, or money market funds."

Thank you for responding.

Re: Capital Gains

NCperson — Fri, 10 Apr 2020 20:22:50 GMT

if you sold in 2019, what kind of tax form did they send you? 1099-B? 1099-R? nothing?

if you are 74, did they remind you to take your RMD, which would mean this is a IRA.

Re: Capital Gains

Jsg1550 — Fri, 10 Apr 2020 21:27:09 GMT

1099 B from Wells Fargo. Lists # of shares, Proceeds, and no Cost Basis or anything else. Tells me to report it on Form 8949 Part 1 with Box B or Part II with Box E checked.

RMD is taken from another account.