If you sell
noncovered shares at a loss and buy replacement shares within the wash sale period, the replacement shares will be covered securities because you bought them after the cost basis reporting rules took effect.
You'll need to keep detailed records of your adjusted basis for
noncovered shares, including adjustments made for purchases and sales of mutual funds, most exchange - traded funds (ETFs), and stocks.
You would maintain one average for covered shares and another for
noncovered shares.
Because covered and
noncovered shares are treated as if held in separate accounts, you can't average these two categories of shares together, even if they're in the same investment account.
Shares purchased before January 1, 2012 are «
noncovered shares.»
The cost basis information provided for
noncovered shares is not required and is offered as a courtesy.
Learn more about covered &
noncovered shares
Cost basis for sales of
noncovered shares will be reported solely to you.
Although we'll include details for sales of both covered shares and
noncovered shares, only the cost basis information for sales of covered shares will be reported to the IRS.
Cost basis reporting for
noncovered shares will be sent to you alone; it will not be sent to the IRS.
Not exact matches
You remain responsible for reporting your cost basis information to the IRS on Form 8949 and on Form 1040, Schedule D, for all
shares sold, whether they're covered or
noncovered.
You won't be able to use this shortcut for sales of
noncovered securities (such as stocks you bought before 2011 or mutual fund
shares from before 2012), or for items requiring adjustments due to application of rules such as the wash sale rule.
You remain responsible for reporting your cost basis information to the IRS every year on Form 1040, Schedule D, for all
shares sold, whether they're covered or
noncovered.
In a proceeding for medical support only, each parent's
share of the child's
noncovered medical expenses shall equal the parent's percentage
share of the combined net income of the parents.