The Cost Basis Reporting LawOn Friday, October 3rd, 2008, President George W. Bush signed H.R. 1424, the Emergency Economic Stabilization Act of 2008 into law (the Act, Pub. L. No. 110-343). The law requires cost basis reporting by brokers to the Internal Revenue Service (IRS) and to taxpayers. The initial effective date for cost basis reporting for most stocks applies to stock acquired on or after January 1, 2011; for mutual funds and dividend reinvestment plan stock (or similar arrangements) acquired on or after January 1, 2012; and for debt instruments, options and other covered securities acquired on or after January 1, 2013.
Learn more about the cost basis reporting law.Visit Wolters Kluwer Financial Services' Cost Basis Reporting Resource Center.
Learn what the cost basis reporting law means to brokers.
Read "The Price of Cost Basis Reporting", Wall Street & Technology, By Melanie Rodier, July 2009.
Read "IRS Begins Developing Guidance On New Broker Basis Reporting Rules", NEWSLETTER Federal Tax Weekly, NO. 7, By Brant Goldwyn, JD, February 12, 2009.
Read "IRS Seeks Input on Cost Basis Reporting", By Chris Kentouris, Securities Industry News, February 10, 2009.
Read "Complying with Higher Corporate Action Standards: The Importance of Booking the U.S. Taxation of Corporate Actions Correctly Given the New Cost Basis Reporting Law", By Stevie D. Conlon, first published in the Journal of Securities Operations & Custody, Vol 2, Issue 1, February, 2009, published by Henry Stewart Publications.
Read "Newly Enacted Cost Basis Reporting Law Presents Broker Challenges", By Stevie D. Conlon, Tax Director, GainsKeeper, The Dividend Digest, Dividend Division of SIFMA, Fall, 2008.
Read the white paper, 'The New Cost Basis Reporting Law: An Introduction'.
Tax Efficient Trading
Learn about tax technology choices and strategies, such as tax loss harvesting.Read "Leading the Tech Revolution", by Vanessa Drucker, Boomer Market Advisor, October, 2008.