Get the free Cost Basis Election Form

This form allows account owners to select or change their cost basis method for shares acquired on or after January 1, 2012.

How to fill out cost basis election form

How to fill out Cost Basis Election Form

1. Obtain the Cost Basis Election Form from the relevant financial institution or download it from their website.
2. Fill out your personal information, including name, address, and account number.
3. Select the type of assets for which you are making the election (e.g., stocks, mutual funds).
4. Choose the cost basis method you prefer (e.g., FIFO, LIFO, specific share identification).
5. Review the instructions provided with the form to ensure all necessary sections are completed.
6. Sign and date the form to validate your election choice.
7. Submit the completed form to your financial institution by the specified deadline.

Who needs Cost Basis Election Form?

1. Investors who buy or sell securities and wish to report their capital gains or losses accurately.
2. Individuals or entities involved in transactions that require specific cost basis methods for tax reporting.
3. Taxpayers who want to optimize their tax situation by choosing a particular method of calculating capital gains.

For pdfFiller’s FAQs

What is Cost Basis Election Form?

The Cost Basis Election Form is a document that allows taxpayers to choose how they want to report the cost basis of their securities when they sell them, which can affect their capital gains tax obligations.

Who is required to file Cost Basis Election Form?

Taxpayers who sell securities and want to specify their method of calculating cost basis for tax reporting purposes 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, taxpayers need to provide their name, taxpayer identification number, details of the security being sold, and the chosen method for calculating cost basis (such as FIFO or specific identification).

What is the purpose of Cost Basis Election Form?

The purpose of the Cost Basis Election Form is to inform the IRS and the taxpayer about the chosen method of calculating cost basis, ensuring accurate reporting of capital gains or losses when securities are sold.

What information must be reported on Cost Basis Election Form?

The information that must be reported on the Cost Basis Election Form includes the taxpayer's identification details, description of the securities, date of acquisition, date of sale, sale price, and the cost basis calculation method being elected.