New York, December 17, 2014 — G2 FinTech, provider of tax analysis and compliance software for the investment management community, today announced the publication of Cost Basis Reporting Phase III: Basic Bond Math. This white paper serves as a tutorial on the "basic" yet complex fixed income math that brokers must know in order to comply with Cost Basis Reporting (CBR) Phase III, and create and / or read 1099-B, 1099-INT, and 1099-OID statements. It focuses on long-term debt instruments issued in 1985 or after and OID & non-OID bonds. The paper includes a spreadsheet that details how the many examples it cites are calculated. G2’s other CBR Phase III papers include Phase III Cost Basis Reporting: The Basics and Phase III Cost Basis Reporting: A Guide to Complying with Expanded Transfer Statement Information Requirements.
Cost Basis Reporting Phase III requires brokers and transfer agents to report a customer's adjusted basis for some of the most complex financial instruments — securities futures contracts, debt instruments and options — acquired on January 1, 2014 or later. They are also required to classify any gain or loss as long-term or short-term for these covered securities.
G2 FinTech President Brian Roberti commented, “We continue to offer practical guidance on tax analysis / accounting of securities transactions (TAST), our core focus. This paper is designed to help brokers tackle the highly complex math (compounding and non-linear equations) behind fixed income securities, for the purpose of generating more accurate CBR Phase III-compliant tax forms for their clients.”
G2 FinTech also announced its participation in two upcoming industry events, continuing its role as a thought leader and educator in the investment management tax analysis space. G2 is a co-sponsor and will have representatives speaking on two panels at the Hedge Fund Tax 101 and K-1 Boot Camp conference, a two-day event run by Financial Research Associates, January 26-27 at The Princeton Club in New York City. Additionally, G2 will host its fourth Taxable Events Webinar on February 4, 2015 discussing the topic of “Tax Implications of Straddles.” Webinar attendees will have the opportunity to earn CPE credit.
For more information about G2 FinTech’s products, webinars and other resources, please visit www.g2ft.com.
G2 FinTech provides European compliance add-on modules and financial services data warehouse software to the investment management community. The company also maintains a thought leadership page on Tax Analysis for Securities Transactions. This page provides tax practitioners and compliance officers with guidelines on how to perform tax accounting on investment portfolios.
Brendan Beaver/Steph Johnson
+1 646 202 9845 / +1 646 202 9842