Tax Tip of the Day

“When will the new 1099-B reporting requirements that require that brokerage and financial institutions include the cost as well as the proceeds from a stock transaction become mandatory?” The new reporting requirement will take effect in 2011 for stocks purchased in 2011, then in 2012, mutual funds and fixed income securities will be included in the reporting requirement. Comment: Over time, the requirement to report cost basis, will increase CPA job security, as the CPA will keep up with the basis of assets to be sold. With the complex issues of computing and tracking basis and tracking the basis, it could extend over generations, if asset are held that long.