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The IRS publication on capital gains is not very helpful, so I'll turn to the Foolish community. I'm sure this question was asked, but, it's taking me too long to find it.

I use the average cost method for determining my tax basis for stock investments. Most of my holdings are 10 to 20 years long. However, I have bought shares in the past two years, and subsequently sold them. Now, the 1099 lists them as long term covered, in which the cost basis is reported to the IRS. The cost basis is not the average cost method.

So how do I report the sale of shares? Can I ignore the recorded cost basis on the 1099 and use my average cost method for the entire sale, which is different? Or do I use two different cost methods on the same stock, and report the sale in different lots with different purchase prices - some average cost, some actual purchase?
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