What additional information is necessary to report a transaction with a net proceeds of $7,521 from the sale of non-covered shares?

To accurately report a transaction involving the sale of non-covered shares, it is essential to obtain both the date(s) the asset was acquired and the asset basis (or cost basis) on the sale date. This information is critical because:

1. Date of Acquisition: Knowing when the shares were acquired helps in determining whether any gain or loss from the sale is long-term or short-term. Long-term capital gains, which apply to assets held for more than one year, are usually taxed at lower rates compared to short-term gains.

2. Asset Basis on the Sale Date: The basis of the asset is necessary to calculate the gain or loss from the sale. The gain or loss is determined by subtracting the basis from the net proceeds. Without this basis, one cannot accurately determine the taxable gain or loss for reporting purposes.

Other options, while they may provide some context, do not encompass the full scope of the information needed for appropriate reporting. Knowing whether the client sold stocks or mutual funds does not directly contribute to the calculation of gain or loss; rather, it pertains more to the specifics of the investment types rather than the financial details necessary for tax reporting. Similarly, understanding solely the asset basis on the sale date or just the purchase