How we report your cost basis information

Cost basis reporting: An overview

All sales of mutual funds, most exchange-traded funds (ETFs), and stocks will generate a Form 1099-B that provides detailed cost basis information to help you report capital gains and losses on your tax return.

Although we'll include details for sales of both covered shares and noncovered shares only the cost basis information for sales of covered shares will be reported to the IRS. Cost basis for sales of noncovered shares will be reported solely to you.

Get details on covered & noncovered shares

For mutual fund accounts

Form 1099-B lists sales, exchanges, and redemptions (including checkwriting activity) from most nonretirement accounts.

For brokerage accounts

Form 1099-B reports sales, mergers, bond maturities, and aggregate profits or losses on regulated futures contracts.

For covered shares

The information you report in column (e) of Form 8949 must match what we send to the IRS on Form 1099-B. We aren't required to make certain adjustments that are necessary for your tax return. For example, we don't adjust basis for wash sales when the purchase or sale is in another account or for taxes paid on gifts. Pay close attention to the IRS instructions for Schedule D and Form 8949.

For noncovered shares

Vanguard only has average cost information for mutual funds, so you're responsible for your recordkeeping if you used another method.

A special note about bonds

Wondering why the cost basis on your individual bonds changes daily?

Unlike your mutual fund, ETF, and stock investments, any income reporting adjustments that affect your cost basis will be applied to your bonds daily and made available online.