This can be tricky when a security has a history of corporate events like spinoffs, stock splits or nontaxable stock dividends because adjustments have to be made.

 

Fortunately, beginning with stocks purchased in 2011, brokerages and others will be required to report the cost basis of the position when they are sold.

This will be a first step and very helpful one to taxpayers. However, do you think it's because the government is here to help?  Think again. You see the government believes people are underreporting their capital gains by billions of dollars, and they would love to be able to tax it
if only the IRS could verify the cost basis figures! 

Until it is fully implemented, the taxpayer will still be responsible for the all the recordkeeping and the math of all the adjustments so don't hesitate to get the help you may need in planning your tax strategy for what's coming!