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Hello and Welcome!

We hope you find our Cost Basis Advisory Page helpful!

G2 FinTech created this page because we understand that compliance with the cost basis reporting law, effective as of January 1, 2011, can be challenging, to say the least. As a leading cost basis software provider, we know all about the complexities involved in calculating and analyzing tax events, such as wash sales and constructive sales. We realize that understanding the impact these events can have on capital gains and losses is anything but simple and straightforward. We’ve learned this first hand from our own extensive research and from hands-on experience helping our many clients — leading hedge funds, fund administrators and prime brokers — successfully tackle their real-world cost basis challenges.

Practical Advice
We want this page to serve as a practical resource on how to implement the different cost basis calculation methods for a myriad of different cases. You’ll find this advice in our White Papers (below). Replete with many examples of different tax event scenarios, our White Papers address critical issues, such as how mutual funds and DRIPs can calculate wash sales as related to reinvested dividends, transfers and other major factors.

Look for more White Papers within the coming weeks!

White Papers Tax Implications of Straddles. by George Michaels and Daniel Tilkin. This paper discusses two issues integral to cost basis calculations: (1) how to calculate taxable gains and losses for straddles transactions, per Section 1092 of the tax code, and (2) how to account for the effects of other taxable events, such as wash sales, on straddles and vice versa. Examples are included.     2/15/12 Qualified Dividend Income. by George Michaels and Daniel Tilkin. Complete with examples, this paper discusses the interaction of constructive sales and straddles on dividends and how to determine whether or not a dividend qualifies for a lower tax rate.     10/28/11 Wash Sale Implications of Short Sales. by George Michaels with Daniel Tilkin and Jonathan Davis. This paper discusses how Holding Periods, Delivery Wash Sales and Constructive Sales impact the highly complex and confusing process of determining whether or not a short sale will result in a wash sale. Through the use of examples, it aims to clarify the ambiguous IRS tax code on this subject.     09/30/11 Prospective Wash Sales. by George Michaels with Daniel Tilkin. Data on prospective wash sales can play a vital role in a tax-aware portfolio management strategy. This paper discusses the two types of events that can result in a prospective wash sale and provides examples to illustrate how to identify these tax events.    08/15/11 Holding Period Adjustment Methods for Wash Sales. by Charles Saluti with Daniel Tilkin and Gregory Hoch. When determining holding period adjustments as a result of wash sales, three methods can be used. This paper explores the intricacies involved in executing each method and pays special attention to ‘chained’ wash sale cases.    07/25/11 Wash Sale Concerns for Mutual Funds & DRIPs. by Atishe Chordia with Anthony Breen and Daniel Tilkin. Mutual fund securities and dividend reinvestment plans acquired on or after January 1st, 2012 must include wash sales in cost basis calculations reported on 1099-Bs. Replete with examples of complex wash sale scenarios, this paper addresses critical issues involved in meeting this new cost basis reporting regulation.    06/06/11 1099-B Statements and Cost Basis Reporting. by George Michaels. A comprehensive review of what brokers need to know and how to prepare for the new cost basis reporting requirements.    10/14/09

G2’s Compliance Solution
Click here to learn about G2’s tax analysis engine for cost basis adjustments—TaxGopher®.

More Information
If you would like to be contacted by a G2 FinTech representative, please send a brief message to sales@g2ft.com.

We will continue to update our White Paper section on a regular basis.

Please visit our Advisory Page often!