Compliance Solutions

Wolters Kluwer Financial Services has been a leader educating the financial services industry about the information and technology complexities that brokers, return preparers, tax advisors, and taxpayers need to address immediately to comply with the cost basis reporting law. GainsKeeper^® & Capital Changes^®, from Wolters Kluwer Financial Services, can help you comply with this law.

The Technology — GainsKeeper^® Solutions.

GainsKeeper^® — the industry’s leading automated tax-lot accounting solution — can help your organization comply with the cost basis reporting law. Leveraging data from Capital Changes, also part of Wolters Kluwer Financial Services and a source relied on by the IRS, GainsKeeper^®’s robust technology, calculates cost basis — adjusted for corporate actions & wash sales, and applies multiple lot relief methods, as required by this law. Installed at more than 30% of the top ten brokerage firms and processing more than 14 million accounts, GainsKeeper^® is available now to help organizations automate processes to comply on time.

Learn More About GainsKeeper^®.

GainsKeeper^® is Highly Scalable.

GainsKeeper^® is inherently scalable, already able to process ‘tax sub-lots’ which are needed to determine whether a transaction has created a wash sale deferral. Such deferrals must be accounted for with this law and will likely result in a 300% increase in data volume.

Beyond Compliance - GainsKeeper^® Provides the Competetive Edge.

“When the new cost basis laws go into effect beginning in 2011, the ability to track and manage cost basis information must become more automated in order to make tax-efficient strategies available to a much wider audience of investors and advisors, who can then gain from tax-efficient trading strategies.”

TowerGroup Report: “Cost Basis Technology for Broker-Dealers: Build, Buy, or Both?” by Sean Cuniff, January, 2009 Reference # V57:38O.

By providing investors and their advisors with detailed running cost basis and capital gains reports, including Schedule D, GainsKeeper^® also offers brokers a competitive edge. With its tax-efficiency tools, GainsKeeper^® helps investors make intelligent decisions about which positions to sell to minimize their capital gains taxes. By allowing investors to make tax efficient decisions, GainsKeeper^® makes it possible for them to realize greater after-tax performance. With these decision and analysis tools seamlessly integrated into your web site, clients can make better informed trading decisions, enabling your firm to generate higher trading volumes.

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GainsKeeper^® FundTaxPro takes the ‘tedious’ out of fund tax compliance.

GainsKeeper^® FundTaxPro delivers automated tax calculations & reporting solutions for more than 3,000 U.S. mutual and hedge funds. By helping funds avoid wash sales, manage capital gains distributions and increase after-tax performance, GainsKeeper^® FundTaxPro can significantly reduce the amount of time spent on tax compliance. By automating these processes, GainsKeeper^® FundTaxPro can help minimize the risk of tax reporting errors. This solution:

Automates the calculation of the wash sale adjustments, eliminating the tedious manual process.
Automates the linking and tracking of straddle positions, calculating loss deferral and holding period adjustments.
Automates the calculation of return of capital, long-term capital gain and §1250 amounts paid on REIT securities.
Automates QDI reporting

GainsKeeper^® BasisPro™ simplifies calculating historic cost basis information.

GainsKeeper^® BasisPro™ provides brokers, tax preparers, financial advisors and back offices with a simple way to automate cost basis calculations — fully adjusted for corporate actions and for dividend reinvestments, for all U.S. equities and mutual funds. This solution:

Saves time by quickly calculating the complete cost basis — realized gain/loss — for any U.S. stock or mutual fund;
Complies with Internal Revenue Code (IRC) by using Capital Changes data, the same solution the IRS depends on for cost basis corporate action information;
Accesses historic prices as far back as 1972;
Tracks historical corporate actions back to 1950.

For more information, visit www.gainskeeper.com.

The Expertise — Capital Changes^®

With over 65 years of experience and 100 years of historical corporate actions data, Capital Changes is the leading tax authority on U.S. and global corporate actions. Prominent financial services, accounting and law firms rely on Capital Changes for its cost basis tracking and legacy of unparalleled analysis of corporate actions.

Capital Changes' corporate actions data ranges from value-added tax analysis, commentaries and opinions to basis adjustments and market values needed to compute gains or losses. Capital Changes is a part of Wolters Kluwer Financial Services, a leading provider of compliance, content, technology, and services for the banking, securities, and insurance industries.

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Editorial Support

Capital Changes' editors are aware of how critical corporate actions information is to its customers, and accuracy is the highest priority. Nothing is assumed. All information that is published can be traced to a dependable, primary source.

In order to help ensure customers have a thorough understanding of corporate actions, we encourage our subscribers to contact our editors if they have any questions or even if they just want to talk through a specific transaction and its tax impact. Every transaction that is published in our daily products contains the name and direct telephone number of the editor most familiar with the transaction.

Capital Changes^® Commentary

In cases in which no U.S. tax opinion is provided by the company, or if the tax opinion provided is ambiguous or incomplete, Capital Changes will often research vital facts and relevant Internal Revenue Code provisions and provide guidance to its subscribers in the form of Capital Changes Commentary. Capital Changes does not provide tax advice. Due to the nature of the transaction or the availability of information, Capital Changes is not able to provide Commentary on every transaction. Capital Changes understands that its customers need to book every transaction, whether or not the company provides a tax opinion. Our Commentary helps them do that.

Capital Changes^® Tax Comments

Comments are included when a company's tax opinion omits a basic, well-settled principle of tax law that subscribers need to remember when booking a transaction or calculating their basis or gain/loss. A Comment may also highlight and explain portions of a company's tax opinion that needs to be emphasized.

Capital Changes^® Tax Caution

Capital Changes alerts its subscribers of potential adverse tax consequences that may arise in a particular transaction.

Methodology

Capital Changes' methodology strictly follows the U.S. Internal Revenue Code.

Your Source For Corporate Action Information.

For more information, visit www.capitalchanges.com.

Your Cost Basis Reporting Compliance Solution Partner

The cost basis reporting law requires brokers to report cost basis — adjusted for wash sales and corporate actions, to taxpayers and to the Internal Revenue Service. Thousands of corporate actions affect cost basis each year. From a tax perspective, some corporate actions are relatively simple to understand, but most are complex, and related wash sale activity can further affect these calculations.

To understand the corporate actions affecting publicly traded securities, including the impact on the holder of the security and the tax consequences of the action, shareholders and their advisors rely on Wolters Kluwer Financial Services.

Wolters Kluwer Finacial Services provides unparalleled tax analysis and technology to help our clients accurately and efficiently process corporate actions and wash sales that impact cost basis.