Tax Planning for Securities Transactions

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New regulations now require brokers and custodians to report specific lots sold, cost basis, amount of gain/loss, the dates of the acquisition and sale, and the character of the gain/loss (short-term/long-term) at the time of the settlement of the transaction. All of this information will be reported directly to the IRS.  Unfortunately, there will not be an opportunity to resolve any cost basis issues after settlement. Taxpayers and their advisors must be proactive in making decisions regarding accounting methods for the securities. Tax Planning for Securities Transactions


The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.


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Keiter CPAs is a certified public accounting firm serving the audittax, accounting and consulting needs of businesses and their owners located in Richmond and across Virginia. We focus on serving emerging growth businesses and companies in the financial servicesconstructionreal estatemanufacturingretail & distribution industries and nonprofits. We also provide business valuations and forensic accounting servicesfamily office services, and inbound international services.

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