03 Mar Cost Basis Reporting: More Than Just a Number
At first glance, reporting the cost of a security purchased by an investor to the Internal Revenue Service seems relatively straightforward.
All a bank, brokerage firm, mutual fund, transfer agent or even issuer would have to do is look up how much the customer paid for it at the time it was bought. Right?
Well, if it were that simple financial firms wouldn’t be so worried about just how they will comply with new cost-basis reporting rules which are just around the corner.