Broker Statements - covered vs. uncovered shares

posted Feb 26, 2013, 5:19 PM by Wayne Culp   [ updated Jan 12, 2015, 7:20 PM by Wayne Culp ]
Brokers refer to:
  • Covered shares: These are any stock and bond shares you purchased on or after January 1, 2011 and mutual fund purchases after January 1, 2012. This includes new shares acquired by reinvesting dividends and/or capital gains from noncovered shares.
  • Noncovered shares:  These are any shares acquired before January 1, 2012, and shares for which the cost basis is unknown.  Brokers are generally unable to determine the cost basis of noncovered shares for accounts opened before 1984 and accounts with noncovered shares acquired by transfer.
See the instructions for the Form 1099-B and Form 8949 that are attached below.
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i1099b.pdf
(219k)
Wayne Culp,
Jan 12, 2015, 7:19 PM
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i8949.pdf
(222k)
Wayne Culp,
Jan 12, 2015, 7:18 PM
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