Get the free Cost Basis Election Form

This form is used to elect a cost basis method for mutual fund shares acquired and subsequently redeemed after January 1, 2012. It provides options for selecting a method that best suits the individual

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 appropriate source, such as the IRS website or your financial institution.
2. Fill out your personal information at the top of the form, including your name, address, and Social Security number.
3. Indicate the specific tax year for which you are making the election.
4. Select your preferred cost basis method from the options provided (e.g., FIFO, LIFO, specific identification).
5. Provide the details of the securities or assets involved, including names, quantities, and dates of acquisition.
6. Review the completed form for accuracy and ensure all necessary signatures are included.
7. Submit the form as directed, either by mailing it to the IRS or your financial institution, or electronically if applicable.

Who needs Cost Basis Election Form?

1. Investors who sell securities or assets and need to report capital gains or losses.
2. Individuals looking to specify how they wish their cost basis to be calculated for tax purposes.
3. Taxpayers seeking to optimize their tax situation by selecting a specific cost basis method.

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 by which they want to calculate the cost basis of their investments when selling securities, typically for tax purposes.

Who is required to file Cost Basis Election Form?

Investors who sell securities and need to report capital gains or losses for tax 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, investors must provide details such as the specific securities sold, the amount of each sell transaction, and the chosen cost basis method (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 ensure accurate reporting of capital gains or losses, thus aiding in the calculation of taxes owed on sold investments.

What information must be reported on Cost Basis Election Form?

The information that must be reported on the Cost Basis Election Form includes the type of security, the date of purchase and sale, the purchase price, the sale price, and the elected cost basis method.