UPDATE COST BASIS FOR TRANSFERRED SECURITIES

When securities are transferred to your account, cost basis information (acquisition date and price) may not arrive immediately. Until this information is received:…

When an account is closed, you should still be able to access Client Portal with your username and password to download your statements and tax forms.

Additional Information…

In the case of position transfers, certain U.S. transferors (e.g., brokers, stock transfer agents, custodians, stock issuers) are required to provide cost basis information for covered…

UPDATE COST BASIS FOR TRANSFERRED SECURITIES

The cost basis information associated with transferred positions (e.g., acquisition date and price) will not be automatically provided from the delivering institution for assets sent via Free of Payment of Global Securities. Client will have to update the cost basis in Client Portal if required. Please reach out to the delivering institution in case confirmation of cost basis for the transferred positions is required. If the cost basis is not updated, then positions will be assigned with default cost basis values where the acquisition date is set to the date of transfer and the cost to the closing price of the security on the date of transfer…

Yes. Our Position Transfer Basis allows you to enter a cost basis to a specific ACATS or ATON transfer date. Log in to Client Portal with your username and password, click the menu icon in the top left corner > Reporting > Tax Documents > Cost Basis…

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If the the delivering broker does not provide cost basis information when transferring positions to your IBKR account, IBKR will set the acquisition date to the date the transfer is posted and the cost basis will be set to the closing price on that same date…

IBKR is required to provide the IRS with cost basis detail on covered securities transactions for U.S. persons via the year-end Form 1099.  U.S. persons, therefore, may not change the cost basis on a transaction executed by IBKR and may only change the cost basis on positions transacted elsewhere and transferred to IBKR under the following circumstances:…

Cost basis is the original value of a security or other asset used for tax purposes to determine whether a capital gain or loss has been realized when that asset is sold or disposed. Depending upon the tax regulations, the cost basis may be adjusted for commissions, wash sales or corporate actions such as stock splits and return of capital distributions…

The cost basis of a security may change due to a corporate action such as stock split, spin-off, return of capital or a merger resulting in a change in share quantity. The cost basis will also change (increase) in the event of a wash sale. Other actions which can change the cost basis of your position include a dividend reinvestment or other addition to the share position (e.g., purchase or option exercise)…

The Cost Basis Reporting Service (CBRS) is an automated system from the DTC that gives financial firms the ability to transfer customer cost basis information from one firm to another on any asset transfer. After a firm transfers an asset to a counterparty, it can use CBRS to send the asset’s cost basis information to the receiving firm or send corrected cost basis information, if necessary…

The cost basis is reported in the Open Positions section of your statements available in Client Portal…

The cost basis for Corporate Actions is determined by how the company files Form 8937 with the IRS which often times does not occur until after the action occurs. When that happens, the cost basis on the Activity Statement…

IBKR is not connected to the German Taxbox system to transfer cost basis relevant data on security transfers.

To update cost basis for your transferred securities to your account from your German Financial Institution please click here: How do I update cost basis information for transferred securities via basic FOP method?…

No. Average cost strictly applies to mutual funds and dividend reinvestment plans and cannot be used to calculate cost basis for individual securities.

In compliance with Treasury Department Circular 230, unless stated to the contrary, any information contained in this FAQ was not intended or written to be used and cannot be used for the purpose of avoiding tax penalties that may be imposed on any taxpayer…

Learn about tax lots, multiple transactions, and how total costs are calculated when entering cost basis information for your transferred securities.

What is a lot?…