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This is also true of stocks transferred between brokerages -- it's supposed to be transfered with. If it's not, there's a correction line on the 1099 with a sp
by freeone3000 5y ago
This is also true of stocks transferred between brokerages -- it's supposed to be transfered with. If it's not, there's a correction line on the 1099 with
a space for accurate cost basis info, and you'd provide the original purchase receipt as an attachment. There might be issues in the space, but cost basis on a transferred equity isn't one of them.
- NickM 5y agoYes, this is correct. The technical term for this is an "in-kind" transfer, and while it might occasionally allow for things to slip through the cracks, it certainly hasn't stopped capital gain reporting requirements from being both feasible and largely effective.