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GainsKeeper Blog

Cost Basis Reporting Update -- Included in Active Senate Energy and Tax Extender Bill with New Effective Dates
September 18, 2008

Cost basis reporting is included in the energy and tax extenders substitute amendment to HR 6049 that was introduced in the Senate Finance Committee Tuesday and released yesterday (9.17.08).

This bill is known as the Energy Improvement and Extension Act of 2008. It is marketed as a bipartisan bill introduced jointly by Baucus and Grassley—chair and ranking minority member of the Senate Finance Committee, along with Senate leadership. Section 403 is cost basis reporting and it is estimated to raise $6.67 billion over 10 years.

The cost basis reporting provision is essentially identical in detail to earlier versions previously reported in our most recent blog postings. The only important difference is that the three staggered effective dates are each pushed back one year. Thus, the effective date for cost basis reporting for most stock would apply to stock acquired on or after January 1, 2011; for open-end mutual fund and dividend reinvestment plan stock acquired on or after January 1, 2012 and for debt instruments, options and other covered securities acquired on or after January 1, 2013.


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