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1040X Question

Recently I discovered a large error I made in 2001 regarding the basis for a mutual fund. Since 2001 I've sold shares from this fund in 2004, 2007, and all the shares in 2009. As a resultt of the error, the calculation of capital gains for that mutual fund in those years in incorrect and I intend to file form 1040X to fix the problem.

My understanding is that I have to go back 3 years on the Federal return and 4 years on the California return but it's not clear to me on how this is determined. Is it 3 years back from the day I file the 1040X? If not, then I do I determine this?

I did consult a tax account on this problem but I'm still not clear about these dates. Thanks

Reply to
Bobster
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3 years from the date the return was due including extension. If you didn't file an extension, your tax 2006 return was due 4/15/2007, and you have until 4/15/2010 to file an amended federal return.
Reply to
removeps-groups

For Federal it's 3 years from the latter of the original due date or the date you filed your 1040. It looks like only 2007 and 2009 are open for both Fed and California, assuming no delinquent returns filed for 2001 and 2004.

Phil Marti VITA/TCE Volunteer Clarksburg, MD

Reply to
Phil Marti

Why would the 2001 date make a difference? I read this as the year he BOUGHT into the fund that he sold in parts in the other 3 years mentioned....

Reply to
D. Stussy

I inherited shares in a Vanguard mutual fund in 1988. In 2001, Vanguard offered to exchange the fund shares to an "Admiral class" of shares in which the fund expense ratio was lower. Basically it's the same fund with a lower cost. It was a no brainer but when I recorded this transaction in Quicken, I did not keep the same basis that I had for the old shares. Instead, Quicken assigned a basis equal to the value of the Admiral class shares in

2001. In order to make it correct, I needed to manually adjust the basis of the new Admiral class shares.

It was a complete fluke that I discovered this error and I doubt it ever would have been discovered by the IRS even if I were audited. The sad irony is that had I entered the correct basis in Quicken I never would have sold these shares since I had a substantial gain instead of the loss I thought I had.

Thanks to everyone for help on this.

Reply to
Bobster

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