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Reply to "Can I rely on Vanguard to compute my cost basis? "
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[quote=Anonymous]I have a Vanguard individual mutual fund account that I've contributed too occasionally over 20 years or so. (Taxable, not IRA) As I get older, I'm starting to sell a bit a a time to help contribute to living expenses. So, I sell, and at the end of the year Vanguard sends me s tax form with the sales amount and the cost basis, which is input for my tax return. So, basically I am trusting Vanguard to calculate the appropriate cost basis. I'm not even sure what the rules are (use most recent purchase, or earliest purchase, for cost basis). Moreover, I don't know when I purchased what. I don't have more than a few years of records. My question is, This works? I can count on Vanguard to calculate the appropriate cost basis? Not that I have much of a choice, since I don't have 20 years of records. [/quote]
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