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:
- The transferor has provided cost basis information and has designated the security as non-covered; or,
- The transferor has not yet provided IBKR with cost basis information.
Please Note
- Brokers are not allowed to accept cost basis information from a U.S. person on a position that the transferor has classified as covered and cost basis information submitted by a U.S. person is subject to override if subsequently delivered by the transferor. In addition, in the event a U.S. person submits cost basis information for a given position, that position will be classified as non-covered regardless of the acquisition date submitted. As non-U.S. persons are not subject to the cost basis reporting rules, they may change the cost basis for transferred without restriction but cannot change the cost basis for transactions executed at IBKR.
Additional Information