- Cost-Basis Reporting
About the New Cost-Basis Reporting Rules
All mutual fund companies will be required to report cost-basis information to shareholders and to the Internal Revenue Service (IRS) on Form 1099-B. The sale of any mutual fund shares purchased on or after January 1, 2012, with the exception of shares held in money market funds and retirement accounts, will be subject to the new rules.
Cost basis is the original price paid for mutual fund shares adjusted to include the effect of commissions, fees, reinvested dividends and capital gains. The difference between cost basis and price determines the capital gain or loss on an investment.
The IRS has always required mutual fund shareholders to track and report their own cost basis to the IRS. After January 1, 2012, cost-basis reporting will be handled by the mutual fund companies based on available information, instead of by shareholders.
Tax time will be easier for you!
In mid-October, all Nationwide Funds shareholders (not including money markets or retirement accounts shareholders) were sent a Cost-Basis Calculation Method Selection Form and a brochure, Understanding Cost-Basis Reporting. Please select a cost-basis calculation method and mail the Form back to Nationwide Mutual Funds before December 31, 2011.
Talk with your investment professional and/or tax advisor about selecting an appropriate cost-basis calculation method based on your circumstances. Your selection may affect the amount of your taxable capital gains. If your Form is not returned before December 31, 2011, the average cost method will be the default calculation method assigned to your account.
Our Shareholder Services representatives are available to answer questions. Just call 1-800-848-0920.
