Tax Reporting Just Became Easier

Starting with stock sales made this year, there will be a change in the way that brokers (such as TD Ameritrade) are required to report the transactions. Investors will receive more information, which will make recordkeeping and tax accounting easier.

Beginning with the tax reports your broker sends for 2011 (February 2012), it will report the sales proceeds AND the cost basis (your original investment purchase) for sales of securities purchased after January 1, 2011. The IRS wants to verify the capital gains or losses reported on your tax return.

BWFA’s investment management clients have always had their cost basis reported on our Realized Gains/Losses Report. Beginning next year, the reports that our clients receive from TD Ameritrade will provide the same level of detail. We will continue to use our report when we prepare your annual tax returns.