Get the free Cost Basis Election Form

Use this form to elect or update your cost basis method for mutual fund shares. This election applies only to covered mutual fund 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 tax authority.
2. Review the instructions provided with the form for specific requirements.
3. Fill in your personal information, including name, address, and taxpayer identification number.
4. Select the appropriate options regarding cost basis methods (e.g., specific identification, first-in-first-out, etc.)
5. Provide details of the assets for which you are making the election, including description and date of acquisition.
6. Double-check the filled form for accuracy and completeness.
7. Sign and date the form before submission.
8. Submit the completed form according to the instructions, either electronically or by mail.

Who needs Cost Basis Election Form?

1. Individuals or entities that trade securities and need to report capital gains or losses for tax purposes.
2. Investors who wish to choose a specific method of calculating cost basis for their investment transactions.
3. Taxpayers who want to ensure compliance with IRS requirements related to cost basis reporting.

For pdfFiller’s FAQs

What is Cost Basis Election Form?

The Cost Basis Election Form is a tax document used by taxpayers to elect how they wish to report the cost basis of their securities when they sell them, which can impact the amount of capital gains tax they may owe.

Who is required to file Cost Basis Election Form?

Taxpayers who sell securities and have the option to elect a specific method for calculating cost basis, such as first-in, first-out (FIFO) or specific identification, 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 basic information about the securities being sold, the method of cost basis calculation they are electing, and their personal identification details such as name and tax identification number.

What is the purpose of Cost Basis Election Form?

The purpose of the Cost Basis Election Form is to allow taxpayers to clearly indicate their method for calculating capital gains or losses from the sale of their securities, which aids in accurate tax reporting and compliance.

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, the type and quantity of securities sold, the cost basis method selected, and any other relevant tax reporting information.