Customized Cost Basis Calculator
In 2012, for the first time brokers began reporting cost basis on the 1099-B in compliance with the Emergency Economic Stabilization Act. Most of the larger institutional firms earnestly began the process of either implementing a cost basis solution or building their own prior to the 2011 tax reporting year but for some, the complexities of this endeavor were not immediately apparent. With the next two phases of the legislation occurring in 2012 and 2014, further analysis of back-office systems is becoming prudent.
As firms begin the process of gap analysis, Netbasis is a cost basis solution delivered through SaaS technology that can be customized to offer a full-service cost basis solution or can be seamlessly integrated into any existing platform. With a complete suite of products and services, Netbasis can support our customer’s very specific integration needs as well as address the most complex cost basis and legislation issues, and after-tax investment optimization strategies.
Our customization options include:
Modular Solutions – For firms that already have a cost basis solution in place and have identified a gap in coverage of specific areas of historical data or complex cost basis calculations, Netbasis offers “snap in” feature modules that can quickly and effectively provide the calculations and/or data that may be missing, without replacing or disrupting your current system or environment. As a cost basis specialist, NetWorth Services can provide you with consultative services and provide you with only the solutions and data that you need and nothing else.
Modular solutions include:
- Wash Sales
- Short and Long-Term Gains
- Gain/loss calculation/Sale proceeds
- All sales methodologies automatically calculated
- Unadjusted pricing look-up for stocks & mutual funds
- Gifting Valuation
- Date of death valuation with 6-month alternative date
- Tax Optimization Tool
- Tax status of corporate actions
- Cash merger information
- Birth-to-death corporate actions
- Birth-to-death dividend look-up
- Cost basis for remaining shares
- Data going back as far as 1925
- Return of capital
- Audit trail of corporate action adjustments
Total Integration – The Netbasis Engine offers customized cost basis calculators that can be integrated into any existing back-office platform or with brokerage books-and-record systems to calculate cost basis on an on-going basis and make any required adjustments for cancelled trades or processing errors. By integrating with a firm’s middleware, which generate client statements, performance reporting and 1099-B’s, the Netbasis system can automatically make the required adjustments for complex corporate action data, tax lot reconciliation, cost basis, realized/unrealized, short/long-term gain/losses, multiple accounting methods, as well as wash sales and short sales. OID accretion and amortization calculations as well as a portfolio management tool can also be integrated as a part of a customized total cost basis solution. Integration Data storage alternatives include data hosting by Netbasis, data mirroring and virtual storage.
Desktop Access – Netbasis can serve as a front-office desktop application or portfolio-tracking tool providing RIA’s, brokers and customer service representatives with quick up-to-date cost basis calculations, historical corporate action information, security pricing, inherited securities and gift valuations. With access to Netbasis, brokers/advisors can build long-term and profitable relationships by providing critical tax-based investment decision support and on-demand portfolio reporting to their clients.
Advisor/Client Portal – A website link to the Netbasis engine puts powerful portfolio management capabilities into the hands of clients, including a tax optimization tool for running “what if” and tax lot relief scenarios around the various lot accounting methods (e.g., LIFO, FIFO, specific lot). A client website may be self-branded by an institution and offered to clients with or without a fee, or consist of a Netbasis-branded button that enables clients to purchase transactions with a credit card.
High-Volume Cost Basis Reconstruction/Verification – When customer accounts are transferred or contain positions that pre-date the enactment of stricter cost basis reporting regulations, Netbasis can be used to reconstruct and/or verify cost basis information that may be missing or questionable. Netbasis can perform these services on a one-time, periodic or ongoing basis, and can also provide year-end cost basis calculations.
NetWorth Services offers an array of innovative products and services that provide real-time financial solutions to diverse segments of the financial services industry.