The Internal Revenue Service (IRS) requires Franklin Templeton to provide cost basis information to both shareholders and the IRS when certain mutual fund shares acquired on or after January 1, 2012, are sold or exchanged.
You should carefully review the cost basis information provided by Franklin Templeton and make any additional basis and holding period adjustments that are required when reporting these amounts on your federal and state income tax returns. Shareholders remain responsible for complying with all federal and state income tax laws when filing their income tax returns.
Below are answers to some common questions about cost basis reporting.
Cost basis is used to determine capital gains and losses for tax purposes when mutual fund shares are sold or exchanged. There are different methods for calculating cost basis, and investors may choose the method they believe is appropriate given their personal tax situation.
No. Cost basis reporting does not apply to retirement accounts, money funds, 529 College Savings Plan accounts and Coverdell Education Savings Accounts (ESAs).
Franklin Templeton will process the request using our default cost basis method of Average Cost.
On your statements or when you log in to your account(s) online.
For additional information on cost basis, contact your tax advisor or visit the IRS website.
The information contained in this Tax Center is not intended to be a complete discussion of all federal or state income tax requirements. This information cannot be used by an investor to avoid any income tax penalties that may be imposed under the Internal Revenue Code. Investors should seek advice from a financial and/or tax advisor about the potential tax implications of their investments in Franklin Templeton fund(s) based on their individual circumstances.