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GainsKeeper in the News

GainsKeeper's Enhanced Short Sale Automation Ready Now for New Cost Basis Reporting Law
Jennifer Marso
Director of Corporate Communications
Wolters Kluwer Financial Services
Angela Peterson
Senior Public Relations Specialist
Wolters Kluwer Financial Services
Latest Addition to Industry-Leading Automated Tax-Based Financial Tools Helps Brokerages Comply With New Cost Basis Requirements

WALTHAM, Mass. - Oct. 15, 2008 - GainsKeeper®, a part of Wolters Kluwer Financial Services, today announced that it has added enhanced short sale tax functionality to its suite of automated tax-based financial tools and services.

The Securities and Exchange Commission's (SEC's) short sale ban on financial stocks, which was effective on Sept. 19, 2008, was lifted last week on Oct. 8. As a result, investors and brokerages are no longer generally prohibited from engaging in the short sales of such stocks.

GainsKeeper's enhanced short sale tax functionality automates the proper tax treatment of short sales, including special holding period rules and wash sale rules. This is critical with the newly enacted cost basis reporting law, which requires financial institutions to report adjusted basis information for securities to the Internal Revenue Service (IRS) and taxpayers. This requirement, which was included in the Emergency Economic Stabilization Act of 2008 that was signed into law on Oct. 3, makes accurate cost basis reporting, including adjustments for corporate actions and wash sales and correctly reporting whether gain/loss is long-term or short-term, mandatory.

"Short sales are subject to special tax rules that affect holding period and short-term/long-term gain/loss determinations and special wash sale rules. Cost basis reporting specifically applies to short sales under the new law and failure to address these special tax rules could result in errors and significant tax penalties," said Stevie Conlon, tax director for GainsKeeper. "This new short sale functionality further ensures that GainsKeeper is ready today to help brokers meet the requirements of cost basis reporting."

"GainsKeeper has been providing proven, tax-accurate, automated basis reporting tools to the financial services community for nearly a decade," said Chuck Ross, vice president and general manager of GainsKeeper. "This enhanced functionality is yet another way in which GainsKeeper provides its customers the features and functionality that are most important."

GainsKeeper provides brokers, mutual funds and hedge funds, as well as individual traders and investors, with a suite of automated tax-smart trading tools. These solutions calculate, track and report corporate actions, cost basis, capital gains and losses, and wash sales.

Installed today at approximately 30 percent of the top 10 brokerage firms, and processing more than 10 million accounts, GainsKeeper provides brokerages with a complete, tax-accurate and automated solution to help ensure compliance with the new cost basis reporting law. GainsKeeper is also the premier provider of automated wash sale and other tax calculations for U.S. mutual funds.

About GainsKeeper

GainsKeeper®, a part of Wolters Kluwer Financial Services, provides automated tax-based financial tools and services to the investment community. GainsKeeper's solutions enable financial institutions to offer sophisticated tax lot accounting services to their customers, ranging from back-office outsourcing to fully integrated, web-based tools and services utilized by the brokerage, mutual fund, and fund administration industries. In addition, GainsKeeper offers products designed specifically for individual investors and accountants to meet their complex tax reporting and portfolio analysis needs. For more information, visit

About Wolters Kluwer Financial Services

Wolters Kluwer Financial Services provides best-in-class compliance, content, and technology solutions and services that help financial organizations manage risk and improve efficiency and effectiveness across their enterprise. The organization's prominent brands include Bankers Systems, VMP® Mortgage Solutions, PCi, GulfPak, Desert Document Services®, AppOne®, GainsKeeper®, Capital Changes, NILS and AuthenticWeb™.

Wolters Kluwer Financial Services' solutions include integrated and stand-alone compliance and workflow tools, documentation, analytics, authoritative information and professional services. Customers include banks, credit unions, mortgage lenders and securities and insurance organizations of all sizes throughout the United States. For more information on Wolters Kluwer Financial Services, visit

Wolters Kluwer is a leading global information services and publishing company. The company provides products and services globally for professionals in the health, tax, accounting, corporate, financial services, legal and regulatory sectors. Wolters Kluwer has annual revenues (2007) of €3.4 billion ($4.8 billion), maintains operations in over 33 countries across Europe, North America, and Asia Pacific and employs approximately 19,500 people worldwide. Wolters Kluwer is headquartered in Amsterdam, the Netherlands. Visit for information about our market positions, customers, brands and organization.