Investment Basis and ROI Tracking Services

Dec. 17, 2009 - PRLog -- The IRS has made it increasing more complicated for the sophisticated investor to accurately report annual capital gain and loss activity.  Each year, many investment firms and individuals receive a plethora of 1099’s, K-1’s, and year-end brokerage statements.  Brokerage firms are increasingly investing in limited partnerships as opposed to individual equities and index funds.  Inadvertently, however, these same brokerage firms misclassify such distributions as dividends, and vise-versa.  Unfortunately, this often leads to double taxation.  The investment basis tracking is in error.

Fortunately, most brokerage firms do track ones investment portfolio for tax purposes.  They often provide a year-end capital gains and loss schedule complete with proceeds and basis.   To their shame though, they usually neglect investment basis tracking of limited partnerships.  They generally do list each LP’s basis, but they are often are not adjusted for distributions and K-1 income activity.  Due to the complexity, lack of time and incomplete available history, many tax preparers fail to properly account for the correct basis of these investments.  CPA’s generally will offer to provide such investment basis tracking services, but it is quite often very expensive.

My firm specializes in investment portfolio basis tracking.  We work with each brokerage firm to ensure that all security transactions are handled in the proper manner.  When 1099’s are incorrectly filed, we insist that a corrected one is prepared.  We often save our clients CPA fees by providing ready made back up schedules for inclusion on required tax filings.  CPA’s generally welcome our investment tracking services.  They often do not have the manpower to perform these mundane and detailed tasks.  We also save our clients money by ensuring that they aren’t inadvertently doubled taxed.

My firm offers on-sight investment portfolio basis tracking services in New York Tri-State region as well as remote access nationwide.  Please inquire for more details.

David Petfield
Petfield & Associates, Inc.
petfield@live.com
845-255-2707