Get the free Cost Basis Election Form - American Century

Cost Basis Election Form IRS regulations require us to report cost basis on mutual fund purchases after January 1, 2012. Complete this form to elect your cost basis method(s). If you choose a method

How to fill out cost basis election form

How to fill out cost basis election form:

1. Obtain the cost basis election form from your financial institution or brokerage firm. It may be available on their website or you may need to request it from them.
2. Read the instructions on the form carefully to understand the purpose and requirements of the cost basis election. This will help you accurately fill out the form.
3. Start by providing your personal information such as your name, address, and social security number. Make sure to double-check the accuracy of this information to avoid any errors.
4. Determine the specific cost basis method you want to elect. The form will likely provide different options such as FIFO (first-in, first-out), LIFO (last-in, first-out), specific identification, or average cost. Choose the method that aligns with your investment strategy or consult with a financial advisor for guidance.
5. Indicate the types of securities or investments for which you are making the cost basis election. This information will be important for the financial institution to correctly apply your chosen cost basis method to the relevant transactions.
6. Provide any additional information or documentation that may be required by the form. This can include details about specific securities you own, any changes in your investment portfolio, or any other relevant information.
7. Review your completed form for accuracy and make sure you have answered all necessary questions. If there are any sections that are unclear or require further clarification, reach out to your financial institution for assistance.

Who needs cost basis election form:

1. Investors who have multiple investments or securities and want to choose a specific cost basis method for tax purposes.
2. Individuals who want to optimize their tax strategies and potentially minimize their tax liability by selecting the most favorable cost basis method.
3. Those who have experienced a change in investment portfolios, such as a merger or acquisition, and need to update their cost basis election to reflect the new circumstances.
4. Traders or investors who engage in complex trading strategies or hold various types of securities such as stocks, bonds, mutual funds, or options, and want to ensure accurate cost basis calculations for tax reporting.

Remember, it's always advisable to consult with a tax professional or financial advisor when making decisions related to cost basis election and your overall tax strategy.

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What is cost basis election form?

The cost basis election form is a form used to elect the method of determining the cost basis of an asset for tax purposes.

Who is required to file cost basis election form?

Individuals or entities who want to choose a specific method for calculating the cost basis of their assets are required to file the cost basis election form.

How to fill out cost basis election form?

To fill out the cost basis election form, one must provide their personal information, details of the asset in question, and select the desired method of determining the cost basis.

What is the purpose of cost basis election form?

The purpose of the cost basis election form is to allow individuals or entities to choose how their cost basis for an asset will be determined for tax purposes.

What information must be reported on cost basis election form?

The cost basis election form requires details about the asset being considered, personal information of the filer, and the chosen method for calculating the cost basis.