Question
How does the cost basis tool in GainsKeeper work?
Answer
If you sold equity securities this year resulting in an account alert or a 7221 baseline error, the cost basis tool will help determine your cost basis through a series of questions, no matter whether you purchased all your shares at one time or in multiple lots. Based upon the trade or position information you know, you can being constructing your stock baseline information, such as the purchase year and if you also reinvested dividends (as far back as 1973). Whether you know everything about your stock or almost nothing, the blanks are filled in for you. This tool provides the extra help needed for missing information, including investment purchase prices, even if you received your investment through an inheritance.
There's no need to sift through piles of statements because the research is done for you. The cost basis tool account for corporate actions such as splits, acquisitions, and mergers as far back as 1950, so you can be confident your investment sales are reported accurately.
In just a few simple steps, you can find your cost basis, determine your gains and losses, and calculate whether they are short-term or long-term. Once you're finished, you decide whether or not to include the results in your portfolio.
Each subscription comes with a limited number of free uses so that you may experiment with the tool. Should you run out, additional calculations may be purchased.