Even though adjusting your cost basis is critical to calculating your capital gain/loss for tax reporting, it is also a crucial component of understanding your after-tax returns and ultimately your real net worth. A tax strategy without knowing your real net worth isn’t a tax strategy at all.
The desktop and online versions of the Netbasis application, with historical pricing and corporate actions, going back as far as 1925, will automatically calculate your adjusted cost basis in seconds, even when your securities have had complicated mergers, splits, spin-offs and other corporate events, and for a wide range of investment instruments. Netbasis offers on demand, auto-completion of Forms 8949 and Schedule D.
With a record number of advisors moving from one firm to another, and firms continuing to merge and acquire other firms, client accounts are also in transition. Netbasis will reconstruct and verify cost basis information for Automated Customer Account Transfer Service (ACATS) or historical positions with missing or questionable cost basis within a client’s portfolio that is in transition, positioning you to provide a value-added to service to your clients.
Netbasis Batch Service can accurately process over 2 million records of complex “buy and sell” transactions within 10 minutes, which is unprecedented in the industry. Netbasis Batch can automatically calculate adjustments, populate missing data, verify account data or cleanse corrupted data for pricing, corporate action data, tax lot reconciliation, cost basis, realized/unrealized, short/long-term gain/losses, multiple accounting methods, as well as identify wash sale violations, short sales, gifted or inherited securities, and can be customized to meet your updating schedule.
Your clients with sizeable trading activity, such as hedge fund firms, are faced with the daunting task of sifting through large amounts of trade data to determine wash sale violations. Thousands or even millions of client records are subject to missing cross account trade detection as well as erroneous deferral assignments to complicated trades. Netbasis Wash Sale Batch Service provides reliable wash sale violation and cost basis adjustment information in order to meet strict 1099-B reporting regulations.
Netbasis can be customized to offer a full-service cost basis solution or can be seamlessly integrated into any existing platform. Netbasis front office desktop application provides professionals with quick cost basis calculations, historical corporate action information, security pricing and date of death and gift valuations. Netbasis can address the most complex cost basis and legislation issues as well as after-tax investment optimization strategies.
NetWorth’s Tax Optimization feature provides a powerful “What If” scenario feature that lets you enter your client’s objectives, such as “What would happen if I limited my gains to a certain dollar amount?” “What would happen if I wanted to maximize my capital gains by selling long term tax lots held for more than one year?”
You can define gain/loss objectives; select the gain or loss per share; choose from short or long-term gain/loss options; specify your goals for proceeds; and even enter the date of sale. Each time you adjust your scenario, you get your answer in seconds. The Tax Optimization tool easily facilitates your ability to neutralize tax obligations by factoring in past-realized gain/loss positions for tax lot harvesting on an easy to use screen.