Tax Planning for Securities Transactions

Posted on 07.26.12

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