I recently closed my Edward Jones account and performed an in kind transfer of all my shares to my Ally Invest Account. I see all partial shares (from my DRIP) had been sold for cash before the transfer, that all of my shares have been transferred over from EJ to Ally, and I see all the cash I had in EW in my Ally account. Now when I look at my Ally account I see Unrealized Gain $x.xx (165%) and I can't find that I bought share A for $100 on 1/1/2015, only that I have share A with a price of $150 and a transfer date of 4/7/2021.

My question is which of the following scenarios has happened:

  • The date and price I bought share A at has been transferred over behind the scenes. If I sell share A on 5/7/2021 (one month after the transfer) I will have long term capital gains and a cost basis of $100.
  • The date and price I bought share A has NOT been transferred over, I will need to pay taxes on the shares I transferred over, my new cost basis for A is $150, and I need to wait to sell until 4/7/2022 for long term capital gains to kick in.

I think it's scenario 1 because people use in kind transfers all the time to avoid selling, paying taxes, and buying the same shares again. The only reason I question it is because I don't see anything in the Ally mobile app to suggest I keep my old cost basis and buy date.

Side question (let me know if this should be moved to a different question), do I need to file a special form that says I transferred my assets from one brokerage to another when I file my 2021 taxes? If so, what is that form name?

  • 1
    Worst case, your 1099-B would report 'basis unknown', and you have to fill it in yourself. You can always overrule a 1099-B in your tax filing if it is wrong / incomplete and you have proof of the correct info. Keep your old paperwork.
    – Aganju
    Apr 9 '21 at 21:08

Sometimes cost basis and dates take a little longer to post to the receiving account than the positions themselves. Just give it a few weeks and that information should eventually appear in your Ally Account. If not, contact Ally.

I transfer positions between my Fidelity and Interactive Brokers accounts all the time, and this always happens in one direction but not in the other: when transferring to Fidelity, all of the basis information arrives immediately, but when transferring to Interactive Brokers, basis information always takes a few weeks to appear.

  • 1
    As a follow up, my information transferred over in the background. It now says Unrealized Gain $x.xx (34%) instead of Unrealized Gain $x.xx (165%) and all of my individual stocks roughly have what I expected for their individual gains/losses.
    – rhavelka
    Apr 13 '21 at 14:10

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