MUTUAL FUNDS

Cost Basis Reporting Options

Correctly determining the cost basis of your shares is essential for properly calculating your capital gain or loss on your federal income tax return. Cost basis reporting regulations require mutual funds to report cost basis information to shareowners and the IRS. Read more to learn about cost basis reporting and find out how these regulations impact you.

Cost Basis Overview

Cost basis is defined as the price you pay for an asset. It is used to determine the amount of gain or loss you will realize if you sell the asset. If a gain is realized, you may owe federal and state income taxes. If a loss is realized, you may be able to deduct the loss on your income tax return. Cost basis reporting applies only to covered shares of non-tax qualified accounts including:

  • Individual
  • Joint
  • UGMA/UTMA
  • Estate
  • Collateral
  • S-Corporation
  • Partnership
  • Trust

Risk Disclosures

Securities distributed by State Farm VP Management Corp.

Securities are not FDIC insured, are not bank guaranteed and are subject to investment risk, including possible loss of principal.

Neither State Farm® nor its agents provide tax or legal advice.

AP2018/05/0661