"Bruce E. Cobern" <bec[at]pipeline.com> wrote in message
news:T9KdnWZZ3_kftnPVnZ2dnUVZ_qrinZ2d[at]earthlink.com...
- quote -


I wonder what happens if you ask for a security to be transferred directly
to you, and out of your broker's account.

--
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"Rich Carreiro" <rlc-news[at]rlcarr.com> wrote in message
news:m31vyq5ysf.fsf[at]swing-shift.time-tripper.com...

- quote -

Having just recently gone through this when my broker changed
firms, all of the basis information was transferred to the new
firm. I was told by my broker that this was required, either
legislatively, or by an agreement amongst most/all of the major
brokerage firms, although I believe it was by law. That would
probably be securities law, rather than tax law. He mentioned
something about them having 90 days to provide the information to
the new firm.

--
Bruce E. Cobern, CPA
mailto:bec[at]pipeline.com

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Mark Bole <makbo[at]pacbell.net> writes:

- quote -

CCH's wording is ambiguous. From what I've read elsewhere, the phrase
"take effect for stock acquired in 2011" should be parsed as "take
effect (for stock acquired) in 2011" and *not* as "take effect for
(stock acquired in 2011)".

- quote -

No. Far from it. The securities are handed over as-is. No sale,
no repurchase, no taxable event.

--
Rich Carreiro rlc-news[at]rlcarr.com

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Rich Carreiro wrote:

- quote -


- quote -

Why would the brokers ask customers for basis for assets acquired prior
to 2011? They don't have to report that, based on the CCH summary.

The challenges for database design and implementation will be
formidable, but doesn't the IRS usually work with major players to come
up with something that is actually implementable? For example, might
there not by some type of hybrid reporting for sales of assets, some of
which were acquired before the implementation date, and some after?

Also, outside of retirement accounts, aren't transfers between
brokerages usually effected by a sale and repurchase?

Let's hope the reporting system has more reliability than the 1098-T for
tuition!

-Mark Bole

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

If you read through CCH's briefing to the end, you'll find
the following tidbit:

"Reporting by brokers has been expanded. Brokers must report the
adjusted basis of publicly-traded securities when reporting sales
transactions and indicate whether gain is long-term or
short-term. Securities subject to the new reporting requirement
include stocks, bonds, debentures, commodities, derivatives, and
other financial instruments designated by Treasury. Reporting
will take effect for stock acquired in 2011, mutual funds acquired
in 2012, and other securities acquired in 2013. The provision is
estimated to raise $6.7 billion over 10 years.

Comment. Brokers will use the first-in, first-out (FIFO) method
or the average cost method to determine basis, unless the taxpayer
provides specifi c identifi cation of the securities being sold."

So, options traders are now going to have to be honest , and this'll
save preparers lots of hair-pulling. It'll be nice to (usually) be able
to just have the numbers. Though of course we'll first have the problem
of helping people with long-time holdings who have no idea of what their
basis is calculate it so they can give it to the brokers when the broker
asks for the basis of securities bought before the broker's basis tracking
system came online. I also hope the industry comes up with a way to
automatically transfer basis info as part of account transfers.

--
Rich Carreiro rlc-news[at]rlcarr.com

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >