Tax Law Updates | New Proposed Regulations
December 28, 2009
IRS Proposes Regulations on Reporting Sales of Securities by Brokers
Basis Reporting by Securities Brokers and Basis Determination for Stock
26 CFR Parts 1, 31, and 301, (REG-101896-09), 12/17/2009
The Internal Revenue Service (“IRS”) has issued proposed regulations relating to reporting sales of securities by brokers and determining the basis of securities.
Specifically, the proposed regulations reflect changes in the law made by the Energy Improvement and Extension Act of 2008 that require brokers when reporting the sale of securities to the IRS to include the customer’s adjusted basis in the sold securities and to classify any gain or loss as long-term or short-term. This document also contains proposed regulations reflecting changes in the law that alter how taxpayers compute basis when averaging the basis of shares acquired at different…
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