• filter:

Vanguard Average Cost Basis vs. SpecID?

  • Page :
  • 1
  • Text Only
  • Search this Topic »
Voting History
rated:
A little while ago I decided to park some cash into Vanguard California Long-Term Tax-Exempt Fund (VCLAX). I've got several purchases spanning from 12/2016 to 8/2017. I've been meaning to slowly rebalance those funds into VTI. My strategy was to sell off lots that either had very low capital gains or were long term capital gains as I am in a high federal and state tax bracket (CA). 

Here's where I messed up, I selected Average Cost Basis instead of SpecID. I was mindlessly clicking through their online forms trying to actually purchase shares. Choosing SpecID from the beginning would have enabled me to selectively sell off tax advantageous lots. When I went to change my cost basis method back to SpecID, all the gains are now showing as short term. I've reached out to Vanguard and they said that since I had previously sold some shares of VCLAX while I had selected average cost basis, they could not reflect the cost basis nor purchase dates now that I've reverted back to SpecID. I've gone back and forth with them to no avail.

Do I have any options to revert back to my old cost basis and purchase dates. I'd be open to manually calculating these if it were an option since Vanguard doesn't seem willing or able to. I plan to reach out to my accountant to see what they think, but wanted to this question up to FWF to see if others have gone through this situation.

Member Summary
Staff Summary
Thanks for visiting FatWallet.com. Join for free to remove this ad.

rated:
.

rated:
caproperty said:   A little while ago I decided to park some cash into Vanguard California Long-Term Tax-Exempt Fund (VCLAX). I've got several purchases spanning from 12/2016 to 8/2017. .............................
***************************************************************************************************
If your earliest buy was 12/2016, wouldn't they all be short term?     Once you sell AVB, all the pre-existing shares take on AVB.  New buys can be spec. ID after you change your default option for cost basis .    Note also that if you sell shares at a loss that you have held less than 6 mos. your loss will be decrease by the amount of exempt interest dividends you have received during that period.      http://fairmark.com/investment-taxation/mutual-fund-tax-guide/sh...

rated:
kaneohe said:   
caproperty said:   A little while ago I decided to park some cash into Vanguard California Long-Term Tax-Exempt Fund (VCLAX). I've got several purchases spanning from 12/2016 to 8/2017. .............................
***************************************************************************************************
If your earliest buy was 12/2016, wouldn't they all be short term?     Once you sell AVB, all the pre-existing shares take on AVB.  New buys can be spec. ID after you change your default option for cost basis .    Note also that if you sell shares at a loss that you have held less than 6 mos. your loss will be decrease by the amount of exempt interest dividends you have received during that period.      http://fairmark.com/investment-taxation/mutual-fund-tax-guide/sh...


  
You're correct that they'd all be short term. I misread the purchase date of when I had bought those shares. Thanks for sharing the special tax treatment of muni funds I had no idea that rule existed. 

  • Quick Reply:  Have something quick to contribute? Just reply below and you're done! hide Quick Reply
     
    Click here for full-featured reply.


Disclaimer: By providing links to other sites, FatWallet.com does not guarantee, approve or endorse the information or products available at these sites, nor does a link indicate any association with or endorsement by the linked site to FatWallet.com.

Thanks for visiting FatWallet.com. Join for free to remove this ad.

While FatWallet makes every effort to post correct information, offers are subject to change without notice.
Some exclusions may apply based upon merchant policies.
© 1999-2017