The Five Myths of Cost-basis PreparednessAchieving compliance with the Emergency Economic Stabilization Act of 2008 |
Computing the gain or loss on securities sold under the new cost basis reporting requirements is a significant and challenging undertaking for brokers. To complicate matters further, there are key aspects of the Emergency Economic Stabilization Act of 2008 (the Act) where the industry is looking for the IRS to provide guidance. While the IRS is expected to continue to clarify the Act, it is unrealistic to expect all of the industry’s questions to be addressed sufficiently. As the industry begins to prepare and respond to the challenges posed by cost basis reporting, several industry groups have formed to tackle these issues and try to help firms better understand cost basis reporting. However, each firm will ultimately have to decide how to comply with the intent of the Act.
This article provides insight into five common myths about cost-basis accounting changes and tries to sweep away various misconceptions.
The five myths of cost-basis preparedness
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