Posts Tagged ‘basis reporting’

Delay in Reporting Requirement for Options and Debt Instruments

May 2, 2012

The requirement for brokers to report the basis of financial instruments is being rolled out in three stages. Basis reporting for sales of stock took effect in 2011, the first year for mutual fund shares and dividend reinvestment plans is 2012, and basis reporting for options and debt instruments was set to begin in 2013. This last piece is the most complicated, and the IRS has announced a one-year delay, so that basis reporting for options and debt instruments will begin in 2014, not 2013.

Text: IRS Notice 2012-34 (PDF)

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Posted in IRS Guidance, News

Gaps in Broker Reporting of Basis

May 14, 2010

It isn’t here yet, but it’s coming soon. Beginning with the 2011 tax year, those Forms 1099-B you receive from your broker for sales of stock will include not just the amount you received in the sale, as it does currently, but also your cost basis. The added information will be a convenience to those who are inclined to comply with the tax law, and a deterrence to those who are not. Basis reporting won’t be comprehensive, however, and it will be interesting to see how taxpayers respond to the gaps. (more…)

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Posted in Capital Gains, Taxation of Investments