Get the free Cost Basis Election Form

This form is used to elect the method of tax lot identification for reporting realized gains and losses on mutual fund shares to the IRS.

How to fill out cost basis election form

How to fill out Cost Basis Election Form

1. Gather necessary information: Collect details about the securities you are reporting, including purchase dates, sales dates, and prices.
2. Obtain the Cost Basis Election Form: Access the form from the relevant tax authority or financial institution's website.
3. Fill in your personal information: Enter your name, address, and Tax Identification Number (TIN).
4. List the securities: Provide details for each security, including the name, identification number, quantity sold, and purchase and sale dates.
5. Choose your cost basis method: Indicate whether you are using specific identification, FIFO (first-in, first-out), LIFO (last-in, first-out), or another method.
6. Review your selections: Double-check all entered information for accuracy to avoid any errors during processing.
7. Sign and date the form: Ensure you provide your signature and the date to certify accuracy.
8. Submit the form: Send the completed form to your broker or tax authority as required.

Who needs Cost Basis Election Form?

1. Individuals or investors who sell securities and need to report their capital gains or losses for tax purposes.
2. Taxpayers who want to specify how they will calculate their cost basis when selling stocks, bonds, or mutual funds.
3. People who have investment accounts with brokers that require the election for accurate tax reporting.

For pdfFiller’s FAQs

What is Cost Basis Election Form?

The Cost Basis Election Form is a document used by investors to choose the method of calculating the cost basis of an asset when it is sold, which determines the capital gains or losses for tax purposes.

Who is required to file Cost Basis Election Form?

Typically, individuals or entities that sell securities or assets with gains or losses must file a Cost Basis Election Form to specify how they wish to report their cost basis for tax purposes.

How to fill out Cost Basis Election Form?

To fill out the Cost Basis Election Form, you need to provide information such as your name, taxpayer identification number, details of the asset sold, the method of cost basis calculation chosen, and any relevant transaction dates.

What is the purpose of Cost Basis Election Form?

The purpose of the Cost Basis Election Form is to allow taxpayers to select their preferred method for calculating cost basis, which can affect the amount of taxable gains or losses reported on their tax returns.

What information must be reported on Cost Basis Election Form?

The Cost Basis Election Form must typically report the taxpayer's identification information, the description of the asset, the purchase date, sale date, the cost basis method selected, and any adjustments to the basis or stock splits.