How to correct stock cost basis with broker?

Question

Backin 2007 I transferred my stock account from one brokerage to another.  I noticed that all the costs were wrong with the new brokerage.  They transferred number of shares but not cost, so all my costs were listed as 0.  So if stock I held had a price of $10/share, my new brokerage was showing a profit of $10/share (price- cost, cost being $0 since it did not transfer over)

Fast forward to 2011.  New IRS rules require my broker to report cost basis of anything I sell in 2011 going forward.  So how do I get my broker to report the correct cost basis?

A nobody · Accepted Answer

Previously, brokers were not permitted to carry cost basis that originated from other broker/dealers - (there was too much legal exposure).

Fast forward to today,  you should be contacting the "customer service" area of you new firm for official instruction on how their firm can handle such a process, it is different from firm to firm

You better asking the help of the firm itself rather than asking "unknown" here on YA

been there done that

latislaw · Answer

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Bob Sacamano · Answer

Usually you can just send them a fax with the correct costs basis instructing them to change your basis to the correct one.

John W · Answer

You file paperwork from your previous broker with the actual cost basis with your income tax report in addition to the paperwork from your current broker.

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How to correct stock cost basis with broker?

4 Answers