House Passes Financial Market Bailout Legislation that Includes Cost Basis Reporting
On Friday October 3rd, President Bush signed into law H.R. 1424, the Emergency Economic Stabilization Act of 2008 in response to the financial market crisis (the Act, Pub. L. No. 110-343). The Act includes required cost basis reporting by brokers to the IRS and taxpayers.
Cost basis reporting is set forth in Section 403 of the Act and the details are essentially the same as previously described–the initial effective date for cost basis reporting for most stock would apply to stock acquired on or after January 1, 2011; for mutual fund and dividend reinvestment plan stock (or similar arrangements) acquired on or after January 1, 2012; and for debt instruments, options and other covered securities acquired on or after January 1, 2013. The provision is expected to raise $6.67 billion over a ten year period.
Stevie
DISCLAIMER: The information and views set forth in GainsKeeper Tax Topics are general in nature and are not intended as legal, tax, or professional advice. Although based on the law and information available as of the date of publication, general assumptions have been made by GainsKeeper Tax Topics which may not take into account potentially important considerations to specific taxpayers. Therefore, the views and information presented by GainsKeeper Tax Topics may not be appropriate for you. Readers must also independently analyze and consider the consequences of subsequent developments and/or other events. Readers must always make their own determinations in light of their specific circumstances.