One of our goals at Lauterbach Financial Advisors is to keep you informed about changes that may affect your accounts. To that end, we want to inform you of a change in IRS reporting requirements for Form 1099-B that begins in 2011.
The 2011 1099-Bs that you will receive in early 2012 from any custodian (for example, Schwab, Fidelity or TD Ameritrade) will report the cost basis and gain or loss on the sale of equity securities. This applies to equity securities that were purchased in your account after December 31, 2010 and then sold on or before December 31, 2011.
Some of our custodians will soon begin to publicize this topic via supplements included in your monthly statements. We are working closely with them and from time to time will provide you with more information on these changes. If you have any questions, please contact us.