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There exists a fear of forgetting about the "deemed sale" because it will be a one year only event. Traditionally when you purchase a stock or other property you have one piece of paper that gives the details of the pruchase. With a "deemed sale" whether it's reported on Form 4797 or Sch D, that's a tax document and not a tradition source of information regarding the cost basis of an asset.

How many people are forgetting this is the 4th and last year to report their taxable IRA rollover into an a ROTH, if they had elected to pay the tax over 4 years instead of one? How many people died this year who were reporting this income and who's executors may innocently forget to include this transaction on the final tax return of the deceased?

This deemed sale business may cause a worse problem because papers get shoved in a drawer, or this information will be buried with a 2001 tax return never to surface again in certain circumstances.

For the person who is alive and well and keeps his records in order, this will be a piece of cake. But for some who worship the ground their tax preparer walks on and expects them to remember for them, because they didn't understand what they were doing in the first place,
I feel the pain already. To assume an attitude of "well, they should've known" is callous. But what if they're the surviving spouse of a control freak partner who never told them? It happens. I see it all the time.

I see problems, that's all.

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