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Level 2

Question

Capital Gains

Forum|Forum|6 years ago
April 10, 2020
5 replies
24 views

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?

A

Anonymous

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

JS121Author

Level 2

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.

Level 15

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.

JS121Author

Level 2

(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."

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.