Undetermined Long Term Transactions

[LaughTrack]

OK, I changed the reporting to the specific transactions that were not covered (rather than by category) and I no longer need to submit these supplemental forms.   That said, I'm not sure I am paying taxes properly on a TIPS bond I bought through a broker as I can't really tell if I have been paying the tax on the increased principal annually or not.   Since I couldn't determine this, I just decided to pay tax on the gain since I bought the bond in 2014, not a huge deal.  I also don't understand why this TIPS bond was not "covered."

[JulieS]

There are a lot of technical details about what is a covered and non-covered security, but in general non-covered assets were bought before January 1, 2014, and subsequently sold.

Since you say you bought this bond in 2014, it may be that the issue date was before January 1, 2014, still making it non-covered. 

[LaughTrack]

Thanks, but no, both my records and my brokers records say I bought it on 10/24/14.   It may have been issued before 2014 as I bought it above par.    Does that explain why it was not covered?

[RobertB4444]

@LaughTrack  Your stock trade is listed as uncovered if the broker is not required to report the basis.  In this case, since the transaction is not initiated before January 1, 2014, the reason why it is uncovered is unclear.  You should consult your broker.

[LaughTrack]

Thanks.   It was a bond trade, US TIPS, does that make a difference?   And the broker was Vanguard.  I would be surprised if they are not on their game.   I can ask them.

[RobertB4444]

Yes, if it was a complex bond it didn't have to be a covered security unless it was purchased after January 1, 2016.  So that does explain it.