Section $6-$ Covered and Noncovered Securities

Question $11$ of $15.$

Which of the following definitions accurately describes a noncovered security?

The broker or custodian is required to report information about the cost basis of the security to both the taxpayer and the IRS.

Information about the sale or disposal of the security can be directly reported on Schedule D$,$ Capital Gains and Losses.

The security was purchased before certain reporting requirements went into effect or is otherwise excluded from the IRS definition of a covered security.

The security was sold or disposed of during the year, and details about the cost basis and the acquisition date were reported to the taxpayer and the IRS on a consolidated statement rather than the IRS version of Form $1099-$B$,$ Proceeds from Broker and Barter Exchange Transactions.

Mark for follow up

Question $12$ of $15.$

When reporting information about the sale or exchange of a noncovered security, a broker or custodian is required to provide a taxpayer and the IRS with information about which of the following?

The date the property was acquired.

The date the property was sold or disposed of$.$

The taxpayer's cost or other basis.

Verification that the taxpayer did not participate in an options strategy that involved covered calls