I had 31.655 shares of DUKE Energy first batch aquired on 7/2/09 14.74 sh.in a DRIP transfered to Vanguard on 8/13/13. DUKE gave me a check of $46.37 at $70.692 sh price for the .655 sh.and transfered 31 sh to Vanguard. On 10/22/13 I sold the 31 sh. at $72.00 from VG account total $2225.00 minus $7.00 fee. My origional total cost including reinvested dividends is $1618.02 including the fractional sh..Also there was a 3/1 rev stock split on 7/2/12. VG has date aquired 8/13/13 cost basis 0. For the fractional share reporting: .655 partial sh. DUK Date aquired 7/2/09 Cost: $14.74 x 3 for rev. stock split =$44.22 x .655 =$28.96 Date sold: 8/13/13 Proceeds: fractional share check $46.37 LT Capital Gain: $17.41
For the 31 sh. sold reporting:(all shares were long term including reinvested dividends)
31 sh. DUK Date aquired: various Cost: $1618.02 minus $28.96 for .655 frac. sh. cost $1589.06 Date sold:10/22/13 Proceeds: 31 sh. x $72.00 minus $7.00 broker fee $2225.00 LT capital gain: $635.94The problem that I see is since Vanguard has Date aquired of 8/13/13 at a cost basis of 0, will they report that to the IRS. I am sure Duke Energy has reported the "Covered Shares" to the IRS. I have all my origional cost basis from Duke Energy DRIP before the transfer. Will I need to put in "Code B", basis reported was incorrect on form 1099-B? Or is there an easier way report this on my schedule-D and 8949, such as just put the fractional share at 0 cost, and just total everything up on the
31 sh. sale including the fractional share cost, pay a couple of dollars more tax, and then go fishing?