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Author Topic: Cost basis in vanguard  (Read 7322 times)

Pebbles555

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Cost basis in vanguard
« on: April 08, 2019, 11:23:55 PM »
I am new in investing and still learning. I set up an account to vanguard and I encounter this cost basis. I would like to ask any suggestion what to do about it. Will I choose average cost, FIFO or specific identification? I read some blogs and article that specific identification is better. I would like to ask if it would be complicated if I choose the specific ID. I hire tax preparer to do tax foe me and my husband for the reason we don?t want to mess up our irs. Just an average here and very new when investing in stocks and index funds... thanks...
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gocurrycracker

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Re: Cost basis in vanguard
« Reply #1 on: April 09, 2019, 12:53:01 AM »
It is not complicated.

Specific identification gives you more control over exact gain/loss for tax optimization
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Pebbles555

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Re: Cost basis in vanguard
« Reply #2 on: April 10, 2019, 01:47:51 AM »
Quote from: gocurrycracker on April 09, 2019, 12:53:01 AM
It is not complicated.

Specific identification gives you more control over exact gain/loss for tax optimization

Will the vanguard provide a statement and track on it every time you sell and buy using the specific identification? I pay a tax preparer to do our taxes coz scared of messing our taxes. I just don?t want it to be complicated for the tax preparer to do our taxes. Thanks again
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gocurrycracker

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Re: Cost basis in vanguard
« Reply #3 on: April 10, 2019, 06:54:12 AM »
Yes, you get statements.

No, it isn't complicated.
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prognastat

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Re: Cost basis in vanguard
« Reply #4 on: April 10, 2019, 08:27:11 PM »
I've had two tax years with investments in Vanguard and have done my taxes myself without any issues so I doubt a pro would have any issues.
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Pebbles555

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Re: Cost basis in vanguard
« Reply #5 on: April 12, 2019, 05:17:53 AM »
Quote from: prognastat on April 10, 2019, 08:27:11 PM
I've had two tax years with investments in Vanguard and have done my taxes myself without any issues so I doubt a pro would have any issues.

Thank you for the reply. Can you share with me by chance how you learn to make your taxes? I want to learn but when I did the first time I mess up on it😩😩😩... thanks again
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prognastat

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Re: Cost basis in vanguard
« Reply #6 on: April 12, 2019, 10:05:06 AM »
I just tend to use tax software to help do my taxes such as turbotax. For almost all things I need to report I get the tax forms from work and my investment companies and simply either fill in the correct document ID and it auto-fills everything necessary or just log in to the 3rd party account and it auto-fills the information. There is relatively little I need to manually find on the tax forms and fill in to the tax software and if I'm confused about something many of the software packages have options to receive an explanation of what something means.
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Pebbles555

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Re: Cost basis in vanguard
« Reply #7 on: April 12, 2019, 10:26:07 AM »
Thanks for the info. Really appreciate it
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