Missing/inaccurate transaction history when filing with the IRS

Question

I was finally successful in using the Transactions > Corporate Acquisition feature of Quicken to adjust the fund information when Oakmark changed my share class in 2021. Quicken "Removed" all the share transactions prior to the change (one transaction) and then "Added" the adjusted share information (several dozen transactions).  Unfortunately Quicken now no longer lets me select any Oakmark shares to Sell (I don’t want to sell right now--I am simply trying to be proactive in planning my mutual fund redemptions over the next few years). My general question at this point is: how do people deal with the issue of IRS filing requirements when the fund transaction history is inaccessible or incomplete or otherwise inaccurate?

Tom Young · Answer

IF you have the costing mechanism for the fund set at Average Cost THEN there's no option to select lots.

"My general question at this point is: how do people deal with the issue of IRS filing requirements when the fund transaction history is inaccessible or incomplete or otherwise inaccurate?"

If it's impossible to reconstruct the cost structure of shares acquired over a long period of time then you have to make logical, supportable estimates.  Frequently you know approximately when the shares were acquired and how they were acquired, e.g., purchased, received as a gift, inherited so you do the best you can with what you have.

Chris_QPW · Answer

I was curious about this question so I looked it up as best I can.

My general question at this point is: how do people deal with the issue of IRS filing requirements when the fund transaction history is inaccessible or incomplete or otherwise inaccurate?

The first step as far as I can see would be hope that the 1099-B sent from the broker has this information.  If it is there then that should solve the problem.  It should at least have the sell price/shares, so what would be missing is the cost basis.

If that isn't there it is up to you to determine it and report it on your taxes as different from "blank".  Over in the TurboTax forum a person answering as an "Employee Tax Expert" suggested you could look up the price it was on the date you bought the shares, but of course that will be very hard if you don't have any records of when you bought the shares, and the extra complication would be if you bought at different times.

About the only thing that jumps out at me for that situation is the hope that you can go back to the broker and get at least the buy date(s).

q_lurker · Answer

For reference; the prior discussion.

Unfortunately Quicken now no longer lets me select any Oakmark shares to Sell

What class of shares were you trying to sell?  You should be able to sell the Advisor class (OAYMX) shares if that is what you had acquire the investor class shares.  The Advisor class should be the security shown in the Add Shares transactions.  Both securities should be in your Security List.  Make sure they are both clearly named in that list.  Make sure you are selecting the right one for the hypothetical sale tranaction.