"Did you buy every investment listed on your 1099-B?" Yes or no after internal selling/buying?

Forum|Forum|1 year ago
October 11, 2024
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Some years ago, my wife received an inheritance of Vanguard funds. So, the answer to the TT question of whether she bought every investment listed on the 1099-B was definitely "no". Over time, our Vanguard advisor suggested moving this or that fund to another Vanguard fund instead, which we would typcally agree to. At this point, all the old funds have been replaced with new funds. This intuitively seems like a long set of transfers to me, but emptying an old fund means selling, and going to a new fund means buying. So can someone tell me how I should answer that question now, and why?

TurboTax Deluxe Online

Best answer by rjs

TurboTax is asking specifically about the investments that are listed on your 1099-B. Those are investments that you sold in 2023. Investments that you sold before 2023, or that you hold now, don't matter. So if all the investments that you sold in 2023, and are listed on the 1099-B, were purchased by you, you should answer Yes. If any of the investments that you sold in 2023 were the original inherited funds, you should answer No. If you sold a fund that you purchased, it doesn't matter if the money for the purchase came from selling an inherited fund. You purchased the new fund.