Although the Netbasis application is delivered through a very user- friendly interface, the power of its engine and breadth and depth of its database is unmatched. The vast Netbasis database of historical pricing and corporate actions going back as far as 1925 allows for accurate cost basis calculations in seconds — even when securities have long and complicated histories of mergers, spin-offs and stock splits — for a wide range of investment instruments including: NYSE, NASDAQ, and other major exchange listed stocks, ADRs, closed-end funds, REITs, OTC securities (Bulletin Board and Pink Sheets), UITs, mutual funds, and debt instruments such as options and bonds. Netbasis enables users to capture and track lot shares acquired under a myriad of circumstances, including reinvestment, employee stock option and other stock plans, voluntary cash purchases, transfer of ownership, cash or stock dividends, and corporate events. It does in seconds what could take days, or more, under manual approaches.
In 2011, NetWorth Services released a redesigned Netbasis application that implemented new features in compliance with the new cost basis legislation. This fresh and forward-looking redesign of Netbasis included an innovative, user-friendly interface that further simplified the process of entering complex investment data. New features also include complex wash sale calculations, estate valuations and gifting. Cost basis results can also be uploaded to the new IRS 8949 or Schedule D Forms.
The Netbasis redesign also features the innovative Tax Optimization Tool, which provides a powerful “what if” scenario feature that lets you enter your objectives – gain or loss amount, short-term or long- term gains, and proceeds – on its easy-to-navigate Web page. Based on these parameters, Netbasis will suggest which tax lots could be sold to meet your objectives. The results are provided on a detailed report that is simple to interpret and analyze. You can then change your objectives, enter new parameters and view the outcome, trying out different scenarios, as many times as needed to get the results you want.
The cost basis legislation allows investors to choose their own sales method. In order to choose effectively, the Netbasis redesign boasts an exclusive feature that calculates and displays all of the sales method options simultaneously, so the user can select the most advantageous sales method for their tax strategy.
Many Unique Features
Netbasis includes a number of valuable and unique features:
- Accounting for systematic investments, withdrawals, and dividend reinvestments
- Complex wash- and short-sale adjustments
- Adjusted total and per-share cost basis
- Adjusted number of shares
- Gain/loss characterization and sale proceeds
- Cost basis for remaining shares
- Absolute pricing look-up for equities and mutual funds
- Sales method selection and result display
- Cash merger and “no-effect” merger information
- Allocation rate information for mergers and spin-offs
- Tax status of corporate actions
- Cost basis backtracking
- Birth-to-death dividend and corporate action look-up
- Equity mapping
- Fair market value for cash and stock mergers
- Return of capital
- Date of death valuation with 6-month alternative date
- Estate and gifting valuation
- Tax optimization tool
Offering brokers and dealers the functionality needed for immediate compliance with new cost basis regulations, Netbasis can serve as a powerful competitive differentiator that attracts new clients while offering the added benefit of improved productivity. It provides highly accurate cost basis calculations for a wide range of investment instruments, including:
- NYSE, NASDAQ and other major exchange listed stocks
- Mutual funds
- ADRs, closed-end funds, REITs, OTC securities (Bulletin Board and Pink Sheets) and UITs
- Debt instruments such as options and bonds
As an SaaS solutions provider, NetWorth Services offers a full range of cost basis solutions that can be quickly accessed through the internet or intranet platforms or implemented within any platform or legacy system and within a very short period of time. The Netbasis “snap in” feature modules 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 to help guide you as your company is undergoing these operational changes in unchartered territories.
Individual Transactions: Access to the web-based Netbasis or Netbasis Navigator can be purchased on a transaction-by-transaction basis. This is an ideal solution for the individual investor or financial services professional that needs adjusted cost basis, corporate action history and other relevant information for a specific security. Transactions may be purchased via credit card, either individually or in discounted, multiple-transaction packages.
Individual or Departmental License: Access to the web-based Netbasis application is also available through both individual and departmental license. An individual or departmental license is a cost-effective solution for financial professionals and government agencies that frequently make cost basis calculations, require historical corporate action information, and need access to historical security pricing and date of death and gift valuation. Licenses may be purchased for one or two years, and provide an individual user or department with unlimited desktop access to Netbasis, either through an intranet or the Internet.
Enterprise Solutions: Organizations with heavy transaction needs, or the desire to provide cost basis information to clients on an ongoing basis, can purchase an enterprise Netbasis license. An enterprise license provides all employees with desktop access to Netbasis, either through an intranet or the Internet.
Batch Solutions: With new regulations making accurate cost basis reporting more important than ever, Netbasis can be used in batch mode to provide high-volume reconstruction or verification of missing or questionable cost basis information. Netbasis can perform these operations on a one-time, periodic or ongoing basis, and can also provide year-end cost basis calculation for uploading into internal or vendor-supplied 1099 preparation applications.
Netbasis is a web-based cost basis solution 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 integration needs as well as address the most complex cost basis and legislation issues, and after-tax investment optimization strategies.
Implementation options include:
- Total Integration – The Netbasis Engine offers customized integration 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 software 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 RIAs, brokers and customer service representatives with quick up-to-date cost basis calculations, historical corporate action information, security pricing, and date of death 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.
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