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?