How do I update cost basis information for transferred securities?

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Accepted Answer

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:

Positions will be classified as "non-covered" for IRS reporting purposes
Default values will be assigned (acquisition date = transfer date; cost = closing price on transfer date)
For covered securities, the transferor typically must provide this information within 15 days of the transfer

Updating Cost Basis

Use the button above or follow these steps:

Log in to Client Portal.
Click the Performance & Reports menu followed by Tax Documents under Reports.
In the Cost Basis panel, click the Configuration (gear) icon next to Position Transfer to see a list of position transfers by date.
Follow the prompts on the screen and confirm.

Rules & Guidelines by Taxpayer Type

For U.S. Taxpayers

Covered securities— Cost basis provided by another broker cannot be changed directly. If information is incorrect, contact the sending broker to request an update and re-delivery of cost basis.
Non-covered securities— You may update cost basis for display purposes, but self-reported information cannot be used for official IRS Form 1099-B reporting unless it comes from your previous broker.

The system will automatically update your manual entries if official cost basis information is later received from your previous broker.

For Non-U.S. Taxpayers

Cost basis is generally not transmitted from the delivering broker. You may update cost basis in Client Portal for display purposes (such as gain/loss reporting in activity statements).

For Canadian Clients

When transferring positions through ATON, delivering brokers are not required to include cost basis data. You should update cost basis information manually using the button above.

Please Note

Taxpayers are ultimately responsible for reporting accurate cost basis and gain/loss information on tax returns, regardless of the classification of their securities.

Additional Information