New York, April 02, 2015 — G2 FinTech, provider of tax analysis and compliance software for the investment management community, today announced the publication of Phase III Cost Basis Reporting: Intermediate Bond Math. This white paper provides an intermediate-level discussion on the complex fixed income math that brokers must understand in order to create 1099-B, 1099-INT, and 1099-OID statements and is a natural progression from Cost Basis Reporting Phase III: Basic Bond Math, published December 2014. This paper explores de minimis rules, elections, bond premium and other key topics necessary to calculate cost bases for fixed income securities.
Cost Basis Reporting (CBR) 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, less-complex 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, “This latest white paper reflects our continued commitment to providing the investment management community with best practices guidelines on Internal Revenue Code (IRC) and CBR compliance. To help insure that our prime broker clients provide more accurate CBR Phase III-compliant tax forms to their customers, this paper offers guidance on how to apply bond math concepts to securities transactions and is replete with examples.”
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/Amy Williams
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