MainStay sends its shareholders a Cost Basis Election Form that allows you to choose your preferred cost basis method for "covered" shares (shares purchased after January 1, 2012).
What is cost basis and why is it important?
Cost basis is generally the price you paid for your shares, adjusted for return of capital, certain corporate actions, and any sales charges or transaction fees. Cost basis is an important calculation used to determine gains and losses on any shares you sell in a taxable (non-retirement) account. You will need this information to prepare your tax return.
What has changed?
Mutual fund companies and brokerage firms are responsible for reporting gross proceeds to the IRS when an investor sells securities. The investor is responsible for maintaining the cost basis of the security, calculating the gain or loss, and reporting it to the IRS. In 2008, as part of the Emergency Economic Stabilization Act (H.R. 1424), Congress amended the Internal Revenue Code to require brokers, including mutual fund companies, to report to customers and the IRS the customers' cost basis in securities (including mutual fund shares) sold or redeemed. For MainStay Fund shares acquired on or after January 1, 2012, we will track your cost basis and provide it to you and the IRS for tax reporting purposes on IRS Form 1099-B. Shareholders must use the information provided.
Which cost basis methods are available at MainStay?
Neither New York Life Insurance Company, nor its affiliates or representatives provide tax, legal or accounting advice. Please contact your own professionals.