---
title: Cost Basis Reporting
date: 2008-10-22T00:00:00-04:00
author: Import Bot
canonical_url: "https://www.kelleydrye.com/viewpoints/client-advisories/cost-basis-reporting"
section: Client Advisories
---
# Cost Basis Reporting

  October 22, 2008

Kelley Drye Client Advisory

 

 

 

 

 

 

Kelley Drye’s Securities Industry Practice Group has prepared a client advisory which provides guidance on Section 403 of the Emergency Economic Stabilization Act of 2008 (the ​“Act”), which amends Section 6045 of the Internal Revenue Code of 1986, as amended (the ​“Code”) to require brokers, shareholder service agents and mutual funds to comply with reporting requirements regarding cost basis in securities transactions. Historically, Code Section 6045 required brokers to file an information return reflecting, among other things, the gross proceeds realized in connection with a securities transaction. The Act expands this obligation by mandating brokers also keep track of and report the cost basis of covered securities, and to specify whether the gains are long-term or short-term.

**What This Means to You**

Although the new reporting requirements will not become effective until, at the earliest, January 1, 2011, most current technology does not incorporate cost basis accounting capabilities. Thus, the new obligations may well require massive system upgrades that will involve a significant investment of time and money.

 

 

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