What is Emergency Economic Stabilization Act of 2008?
The Emergency Economic Stabilization Act of 2008 requires broker-dealers and mutual fund providers to report cost basis and holding period information to the taxpayer and the IRS on the sale of ‘covered’ securities. Reporting will be phased in by security type over the next three years, starting with most stocks purchased in the 2011 tax year or later. Only sales of covered securities will result in cost basis being reported to the IRS. Today, we provide cost basis information for most stocks and mutual funds purchased, if available, to clients as supplemental information within the year-end tax statement. We will not report this information to the IRS for the 2010 tax year. Beginning with any stocks purchased after Jan. 1, 2011, we will report cost basis information on these investments to the IRS when the stock is sold.
Related Questions
- How do federal financial interventions, such as the Emergency Economic Stabilization Act of 2008, affect the national accounts?
- When does the IRA Charitable Rollover provision of the Emergency Economic Stabilization Act of 2008 (H.R. 1424) take effect?
- How does this plan relate to the recently approved Emergency Economic Stabilization Act of 2008?
