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Robert W. Baird & Co. Incorporated ("Baird") does not provide tax advice. It is important that you consult a professional tax advisor regarding your individual tax situation.
Baird shall provide you with electronic access, through your computer or other electronic device to Baird OnLine ("the Site"), including but not limited to the provision of information through the Site by means of an unaffiliated Internet service provider and the ability to communicate electronically with Baird. Baird may cancel or change the Site or registration instructions at any time upon printed or posting of electronic notice to you. Your continued use of the Site following the posting or notice of any changes will constitute your acceptance of such changes. You agree not to attempt to connect to the Site, to use the Site or to view any of the information on the Site if you do not agree to the terms of this Agreement.
In the event you use the Site or the links included on the Site to gain access to an Internet location or electronic source of information of any company, organization or person other than Baird, you acknowledge that such other Internet Web sites or locations are not under the control of Baird and you agree that Baird shall not be responsible for any information or other links found at any such Web site or location or for your use of such information. Baird provides such links only as a convenience to you.
Carefully Review All Information You Import With Your Records
With respect to Baird OnLine clients, unless we otherwise notify you in writing, any information provided through the Site shall not be deemed to supersede or replace your Baird 1099 tax forms or any "Corrected" Baird 1099 tax forms. In certain instances, the imported data may not accurately reflect the information needed for tax reporting. Be sure to compare the data you import into TurboTax against the printed Baird 1099 tax forms, as you may be required to modify, delete or otherwise act upon some or all of the information that you import from Baird OnLine. Certain information may be imported; however, you may be required to make an affirmative choice as to how it should be accounted for on your federal tax return.
TurboTax Interview/Review
It is important to understand that the tax information imported from Baird OnLine to your TurboTax return may not be all of the information required for you to properly complete the investment income portion of your tax return. It is essential that you complete the TurboTax Interview and/or Review processes in their entireties to ensure that all Baird OnLine information is correctly reported to the IRS and/or the state(s) to which you report.
Be sure to verify the information that you import with your own records in order to ensure accurate and complete reporting of all required tax information on your federal and/or state tax return(s). Although Baird is providing the tax information import as an additional service, Baird does not guarantee that the information provided is sufficient for tax reporting purposes, and Baird is not liable for your reliance upon or use of the import feature or the data provided through such feature. If you have specific questions regarding the preparation of your tax return, contact your tax advisor, the IRS or the state(s) to which you report.
About the Import Data
Your imported tax data is based on information known to Baird. The data is periodically updated to reflect adjustments as indicated on any subsequent “Corrected” Baird 1099 tax forms. Baird supports the import of data from IRS Forms 1099-DIV, 1099-INT, 1099-OID, 1099-MISC, 1099-B, and 1099-R. The imported data may not include all adjustments or information necessary in the preparation of your tax return. Baird provides the following information sources to help you complete your tax return. We recommend that you read the following information:
The import data containing your tax information is subject to amendment and, if applicable, Baird will issue you “Corrected” Baird 1099 tax forms.
Alternative Minimum Tax
Your tax liability could be affected by interest received from private activity bonds. The amount from IRS Form 1099-INT box 9 (Specified Private Activity Bond Interest) should be included in determining your potential alternative minimum tax (AMT) exposure. The amount in box 9 includes the portion of both Tax Exempt Dividends and Tax Exempt Interest subject to AMT. If applicable to your account, you will be required to enter interest derived from private activity bonds on Form 6251. Refer to your Baird 1099 tax forms for Form 1099-INT box 9 (Specified Private Activity Bond Interest). Consult your tax advisor and IRS Instructions for Form 6251 (Alternative Minimum Tax for Individuals).
Cost Basis
Cost basis represents what you paid for your security, generally, the purchase price. You must determine cost basis to calculate the reportable capital gain/loss from the sales of your securities. Cost basis and capital gains/losses are reported on your IRS Form Schedule D.
Baird provides cost basis information in the TurboTax download as a courtesy to our clients. However, this information may be missing or not reflect all adjustments which need to be made in order to accurately report gains or losses for tax reporting purposes. You should verify the cost basis and acquisition date information provided in the download against your own records when determining the appropriate cost basis and acquisition date to be used. If the cost basis and/or acquisition date that was downloaded does not match your records or is missing, TurboTax software will allow you to modify any of the information which was downloaded from Baird.
Even though Baird provides the cost basis and acquisition date information associated with items on IRS Form 1099-B (Proceeds from Broker and Barter Exchange Transactions), it is the client’s responsibility to verify and reconcile the cost basis and acquisition date information with the items on IRS Form 1099-B. Baird will report only the proceeds, not the gain/loss information associated with IRS Form 1099-B to the IRS.
The cost basis and acquisition date information in the download is derived from transactions processed through Baird or information supplied by you. Baird liquidates the position with the highest purchase price first unless you have instructed us otherwise.
Consult your tax advisor and IRS Instructions for Schedule D (Capital Gains and Losses) for additional information.
Cost Basis Supplied by the Client
The cost basis supplied in the TurboTax download may include cost basis provided by you, the client. Baird is not responsible for the reporting of cost basis information for which the client supplied the cost basis information. Baird provides cost basis and acquisition date information in the TurboTax download as a courtesy to our clients. However, this information may be missing or may not reflect all adjustments which need to be made in order to accurately report gains or losses for tax reporting purposes. You should verify the cost basis and acquisition date information provided in the download against your own records when determining the appropriate cost basis and acquisition date to be used when calculating gains and losses for tax reporting purposes. TurboTax software will allow you to modify any of the information which was downloaded from Baird. Consult with your tax advisor, the IRS and relevant IRS publications for additional information.
Cost Basis Calculation Methods
Baird provides cost basis and acquisition date information as a courtesy to our clients. However, this information may not reflect all adjustments which need to be made in order to accurately report gains or losses for tax reporting purposes. Baird generally liquidates the position with the highest acquisition price first unless we have been instructed otherwise. You should verify the cost basis and acquisition date information provided in the download against your own records when determining the appropriate cost basis and acquisition date to be used when calculating gains and losses for tax reporting purposes.
If at any time you have used other methods for tracking and/or reporting cost basis for securities held in your account, you must use your own records for tax reporting purposes for those securities and cannot rely on the data supplied in the TurboTax download. TurboTax software will allow you to modify any of the information which was downloaded from Baird.
If you have identified a specific tax lot of a security to be liquidated, at the time the trade was placed, that tax lot identification may not be reflected in the cost basis information that is imported into TurboTax from Baird. You must carefully compare your records against the data that was imported and you must use your own records to accurately record the cost basis and acquisition date for tax reporting purposes. TurboTax software will allow you to modify any of the information which was downloaded from Baird.
You may need IRS authorization to change the cost basis method you selected. Consult with your tax advisor, the IRS and relevant IRS publications for additional information.
Missing Cost Basis
If the cost basis and/or acquisition date is missing from some of your securities, it may be because you purchased the security prior to March 30, 1996 or because you transferred it to Baird from another financial institution and they did not provide the cost basis information to us. Please refer to your own tax records to accurately record the cost basis and acquisition date to supplement the sale information which will be imported into TurboTax.
Cost basis will not be supplied in the import process for certain securities, which include, but are not limited to, securities which have undergone a reorganization like bankruptcies, mergers, and acquisitions; principal paydown securities like Limited Partnerships (LPs); certain short sales; and Original Issue Discount securities (OIDs). Please consult your tax advisor for guidance on reporting gain/loss information for sales of these types of investments.
Cost Basis Associated with Reorganizations
Because of the complexity of reorganizations like mergers, acquisitions, and bankruptcies, cost basis related to securities which have undergone a reorganization may not supplied in the TurboTax download. Please refer to your own tax records to accurately record the cost basis information to supplement the sale information, which will be imported into TurboTax. Consult with your tax advisor, the IRS and relevant IRS publications for additional information.
Cost Basis for Principal Paydown Securities
Cost basis related to securities which may return principal like Limited Partnerships (LPs) will not be supported in the TurboTax download. Please refer to your own tax records to accurately record the cost basis information to supplement the sale information, which will be imported into TurboTax. Consult with your tax advisor, the IRS and relevant IRS publications for additional information.
Cost Basis for DPPs and REITs
Cost basis related to Direct Participation Programs (DPPs) and Real Estate Investment Trusts (REITs) is supported in the TurboTax download. Please note that the original cost has not adjusted for any returns of capital distributions you may have received while you owned the securitiy. You must manually account for any returns of capital distributions you received. Please refer to your own tax records to accurately record the cost basis information to supplement the sale information, which will be imported into TurboTax. Consult with your tax advisor, the IRS and relevant IRS publications for additional information.
Fixed Income Securities
Original Issue Discount (OID) reported on the 1099-OID and imported from Baird OnLine is calculated assuming the bonds were purchased on the Date of Original Issue and at the Original Issue Price. If you purchased the bonds at a market premium or market discount, or if the obligation is either a stripped bond or coupon, you must compute your proper amount of OID. The import feature of TurboTax does not calculate any OID adjustments to reflect your purchase date or purchase price. Cost basis related to these types of transactions is not supported in the TurboTax download. Refer to your own tax records to accurately record the cost basis information to supplement the sale information, which will be imported into TurboTax. Consult with your tax advisor, the IRS and relevant IRS publications for additional information.
Foreign Securities
Certain foreign securities may be considered to be Passive Foreign Investment Companies (PFIC) under the Internal Revenue Code. If you hold shares in a PFIC, the tax import will not correctly report the tax information required by the IRS for these securities; this may depend on shareholder-level tax elections. Consult your tax advisor and the IRS for additional information on tax elections and reporting requirements for shareholders of PFICs.
Foreign Tax Credit
You may be able to claim taxes paid to a foreign country as a deduction or as a credit on your federal tax return. You will need to make this election after you import your brokerage account tax information from Baird OnLine. Generally, it is more advantageous to claim a credit on your return. Consult with your tax advisor, the IRS and relevant IRS publications for additional information.
Master Limited Partnerships
The tax information import does not contain any tax information for distributions paid to your brokerage account for Master Limited Partnerships. Cost basis related to these types of transactions is not supported in the TurboTax download. Refer to your own tax records to accurately record the cost basis information to supplement the sale information, which will be imported into TurboTax. You should receive a separate Schedule K-1, issued directly by the partnership. General partners normally do not issue K-1s until after March 15. Consult with your tax advisor, the IRS and relevant IRS publications for additional information.
Option Transactions
The tax information import does support the import of certain Closed Options Transactions (calls/puts) and the related cost basis information. While these transactions are not reported to the IRS, Options transactions must be reported on your IRS Form Schedule D. Refer to your Baird 1099 tax forms—”Option Purchases” and “Option Sales” sections or the "Schedule of Gains/Losses". Consult with your tax advisor, the IRS and relevant IRS publications for additional information.
Short Sales
The IRS requires Baird to report all short-sale transactions on Form 1099-B, even though you may not have closed the position. The TurboTax download will supply the proceeds, and the cost basis information if the short-sale transaction was closed by purchasing back the shares. If the short-sale was not closed, only the gross proceeds will be supplied and you must reconcile the open transaction. Consult with your tax advisor, the IRS and relevant IRS publications for additional information.
State Income Tax Issues
The tax information import provided by Baird OnLine is based on reporting requirements for your federal tax return. It is not meant to support state tax returns. If you are using this information to complete your state tax return through TurboTax or otherwise, obtain your state income tax reporting regulations to determine any adjustments or modification to the information provided. For example, tax-exempt municipal income and income derived from certain U.S. Treasury obligations may not be properly imported for the completion of your state income tax return. Consult with your tax advisor, the IRS and relevant IRS publications for additional information.
Wash Sales
A wash sale occurs when shares are sold at a loss and, within 30 days before or after the sale, shares of the same security or a substantially identical security are purchased. If a wash sale occurs, the loss from the transaction is disallowed under the Internal Revenue Code. When a wash sale occurs, the amount of the loss is applied to the cost basis of the purchased shares that caused the wash sale. The wash sale rule applies across the calendar year.
For example:
Realized losses from security sales late in December 2008 could be washed if you were to re-acquire the security within 30 days (in January 2009). Waiting until February 2, 2009, to complete your tax return would prevent your trading activity during the month of January 2009 from invoking the wash sale rule.
Baird does not adjust for wash sales. You must check your own records for all of your accounts to ensure you are correctly reporting any wash sale that may have occurred. You must carefully compare your records against the data that was imported and you must use your own records to accurately record the cost basis for tax reporting purposes. TurboTax software will allow you to modify any of the information, which was downloaded from Baird. Consult with your tax advisor, the IRS and relevant IRS publications for additional information.
TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries. Intuit Inc. is not affiliated with Robert W. Baird & Co. Incorporated and is solely responsible for the information provided by Intuit Inc. for users of TurboTax software. Robert W. Baird & Co. Incorporated cannot guarantee that Intuit Inc. supplied information and content are accurate, complete, or timely and does not make any warranties, conditions, guarantees, or representations regarding the results obtained from such use.
It is important to understand that the tax information imported from Baird OnLine to TurboTax products may not be all of the information required for you to properly complete the investment income portion of your federal and/or state tax return. It is essential that you complete the TurboTax Interview and/or Review processes in their entireties to ensure that all Baird OnLine information is correctly reported to the IRS and/or the state(s) to which you report.
Be sure to verify the information that you import with your own records in order to ensure accurate and complete reporting of all required tax information on your federal and/or state tax return(s). Although Baird is providing the tax information import as an additional service, Baird does not guarantee that the information provided is sufficient for tax reporting purposes, and Baird is not liable for your reliance upon or use of the import feature or the data provided through such feature. If you have specific questions regarding the preparation of your tax return, contact your tax advisor, the IRS, or the state(s) to which you report.
The Baird 1099 tax forms are the official record of 1099 information maintained at Robert W. Baird & Co. Incorporated. Robert W. Baird & Co. Incorporated disclaims any liability arising from the use of TurboTax software or the content furnished by Intuit Inc., including but not limited to, any resulting information obtained from such use, or interpretations of information made as a result of such use.
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