for all your cost basis questions
Confused about the cost basis of your investment securities or how to account for those stock spinoffs , mergers , splits , split-offs , rights, or class action claim checks ? We explain in plain English the steps you need to take to calculate your cost basis. We give you ideas about what questions to ask and where to find the information you need.
Your cost basis depends upon your answers to the following types of questions:
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• What kind of bond or note do you own -- taxable or tax-exempt?
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• Is your investment a "covered security " under the new cost basis reporting rules for Form 1099 reports and what default method did you choose? • Did the company make any "return of capital " payments? • Were you required or did you elect to allocate part of your cost basis to stock rights you received? • Did the bond, unit trust, or mortgage-backed security (e.g. " GNMA's ") you owned make any "return of principal " payments? • Did you own the security at another time and sell it at a loss (wash sale rules )? • Did you acquire the investment from a related party, such as a family member? • Did you receive shares when an insurance company demutualized ? • Did you deduct depletion expense on an oil royalty trust ? • Did you report income or receive distributions from a master limited partnership ? • Did you deduct depreciation, make improvements, or claim tax credits on your personal residence ? • Do you have any "investment in the contract" for tax-deferred annuities ? • Did you sell the stock that you received as a gift at a gain or a loss? • What expenses did your Commodity ETF holding gold or silver bullion incur? • How do the tax rules for the new Exchange-Traded Products (ETPs) impact your cost basis?
Click on the navigation tabs above for your type of investment security (stocks, other assets, bonds, mutual funds, etc.) for help with these questions and for more information.
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