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Financial Planning / Tax Strategies


Subject:  Re: Half Step up cost basis - stock Date:  9/16/2018  1:41 PM
Author:  aj485 Number:  127966 of 129721

This is an ages old JTWROS DRIP account - I was hoping that the transfer agent would get the correct cost basis applied - at least for the half of the shares that require adjusting.
Then the plan was to transfer in kind to another broker to consolidate assets - to make it fairly painless it would be nice to have at least that half basis set in stone when transferred.

How old is 'ages' old? Please keep in mind that for DRIP investments, the basis is required to be reported to the IRS only for purchases dated in 2012 and later. At least in my experience (although I haven't ever had a DRIP account), if the broker isn't required to report the basis, they usually don't. And even if they do, as already pointed out, you can adjust the basis that the broker reports using form 8949 if the reported basis isn't correct.

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