Phase-in Period

This is the period when the Cost Basis Regulations are phased in. The regulations specify a multi-year phase-in period between January 1, 2011 and January 1, 2014. During this time different securities classes will become covered securities and subject to the new 1099-B reporting. The phase-in of security classes is as follows:

  • Stocks, including domestic and foreign stocks, real estate investment trusts, American Depository Receipts (ADRs) and exchanged traded funds (ETFs) that are not registered as a Regulated Investment Company (“RIC”) nor connected with a Dividend Reinvestment Plan – January 1, 2011
  • Qualified funds, including open-end and closed-end mutual funds, ETFs and UITs that are classified as RICs – January 1, 2012
  • Options, fixed income instruments, derivatives, debt instruments and other specified securities – January 1, 2014