Cost Basis Legislation – What You Should Know
Tax Statement Downloads
Cost Basis Legislation (CBL) that took effect in 2011 requires Baird to report adjusted cost basis to the Internal Revenue Service (IRS) on Form 1099-B (Gross Proceeds) when Covered securities are sold, redeemed or exchanged in taxable (i.e., reportable)1 accounts. For tax year 2013, the definition of Covered securities remains the same as the previous tax year. The third phase of CBL does not become effective until tax year 2014 when Simple Debt and Options become Covered securities.
Cost basis is an important part of accurately reporting capital gains and losses when filing tax returns since it directly impacts your taxable income. Your tax return (including Form 8949 and Schedule D – Form 1040) must reflect the amounts Baird reports on the Form 1099-B since the IRS will compare your tax return to what is reported by Baird. You should reconcile any differences and provide supporting documentation accordingly.2
Please read the '2013 Cost Basis Legislation – What You Should Know' for additional information.
2013 Tax DocumentsDuring the 2013 tax season, Baird will issue various tax documents to clients based on the type of account and the activity within the account. A hard copy of the applicable tax forms will be mailed via the United States Postal Service (USPS) to each client by the IRS due date.
|Tax Form||IRS Due Date|
|2013 Form 1099-R||January 31, 2014|
|2013 Form 1099-Q||January 31, 2014|
|2013 Tax Statement 1
(see below for more information)
|Wave I: February 18, 2014
Wave II: March 17, 2014 3
|2013 Form 1097-BTC||February 18, 2014|
|2013 Form 1042-S||March 17, 2014|
|2013 REMIC/WHMT Tax Statement||March 17, 2014|
|2013 Form 5498-ESA||April 30, 2014|
|2013 Form 5498||June 2, 2014|
Convenient Access to Your Tax Documents.Baird offers clients convenient access to many of the tax documents issued in addition to mailing them through the USPS
- Baird OnLine – an electronic copy of your tax forms will be available on Baird OnLine several days prior to the USPS mailing. Note that you must have a Baird OnLine ID and password to access your tax forms. (Register for Baird OnLine access here.)
- Turbo Tax – select tax forms (2012 Form 1099-R, 2012 Tax Statement and 2012 REMIC/WHMT Tax Statement) will be available to download into Turbo Tax. (Click here for additional information on the Turbo Tax download.)
- CSV File – you (and your tax preparer) can download the 2013 Tax Statement1 into a CSV (comma separated value) file when the tax document is received. The CSV file can then be electronically transferred into most professional tax accounting software, thus eliminating the majority of the manual data entry and saving considerable time for you and your tax preparer.
Please read Instructions to Download the Baird Tax Statement into a CSV filefor additional information.
- Wave I will be mailed by February 18, 2014
- Wave II will be mailed by March 17, 20143
We anticipate the majority of accounts will be mailed on or before February 18 in Wave I.
Certain accounts will be held and not mailed in Wave I if third parties (e.g., exchange-traded funds, mutual funds, real estate investment trusts and unit investment trusts) have not provided their year-end tax information adjustments prior to the processing deadline date. Any remaining accounts not mailed in Wave I will be mailed in Wave II.
A 2013 Tax Statement will be issued if you received dividends or interest totaling in aggregate of at least $10 or if you received any gross proceeds.4
2 There may be instances when the information you report to the IRS differs from the information reported by Baird. You must be familiar with tax return reporting rules and be able to verify the differences. Wash sales are an example of a transaction that may cause differences between information reported to the IRS by Baird. You are not allowed to claim losses when reporting wash sales, though the disallowed amount must be reported to the IRS. Baird will identify wash sales within a given account, but it is your responsibility to identify wash sales that are a result of trades within different accounts at Baird or other financial institutions where you hold accounts. All gains from wash sales are also reported.
4 A 2013 Tax Statement will be issued if your taxable account meets or exceeds any of the IRS minimum thresholds as follows: (a) $10 or more of dividends, capital gain distributions, nondividend distributions, corporate interest, Treasury interest, tax-exempt interest/dividends, original issue discount, Treasury original issue discount or substitute payments, (b) $600 or more of any cash liquidation distributions, royalty distributions or other income distributions, (c) at least one gross proceeds transaction or (d) any federal backup withholding.