2012 Innovation Awards Nomination:
Netbasis
www.networthservices.com
Netbasis sets the standard for securities cost basis calculations. By using historical security pricing data going back as far as 80 years, Netbasis quickly and accurately determines the adjusted cost basis of virtually any security traded in the United States and abroad– regardless of its history of capital events. Netbasis provides pricing and corporate events for a wide range of investment instruments, including the NYSE, NASDAQ and other major exchange listed stocks, ADRs, closed-end funds, REITs, OTC securities (Bulletin Board and Pink Sheets), UITs, Mutual funds and debt instruments such as options and bonds.
Even when securities have been held for decades and have a complicated history of corporate action events, Netbasis can easily adjust for those events and calculate the cost basis in seconds. Tax professionals are often presented with incomplete client records, especially for inherited securities. Netbasis can still provide an accurate adjusted cost basis with very little information; even just the year the investment was purchased or acquired.
Netbasis database can go back in time and find the pricing for the information entered and then move forward to the sale. The results are then displayed in a chronological listing of all of the historical corporate action events that altered the original purchase price of the investment, such as; stock splits, mergers, spin-offs, dividend reinvestments and alike. Netbasis also calculates the cost basis for inherited and gifted shares.
Although the Netbasis application is delivered through a very user-friendly interface, the power of its engine and breadth and depth of its database is unmatched. Netbasis uses proprietary algorithms and rigorous data scrubbing to generate results almost instantly.
The implementation of the Cost Basis Legislation has presented a number of unprecedented challenges to tax professionals. Any sale of securities prior to 2011 is not reported by brokers on the new 1099-B, and the media is reporting that what is reported often is incorrect. Netbasis will accurately calculate their clients’ cost basis regardless of what is or isn’t reported on the 1099-B, in seconds. Netbasis allows our tax professional clients to efficiently and effectively resolve serious cost basis reporting problems for their clients.
The new cost basis law also allows taxpayers to choose their sales methodology for specific lots but requires them to report their choice to their brokers up to three days after the sale. If not, the broker will use a default method, which isn’t always the best option for minimizing taxes. Netbasis executes and displays the calculations for all of the sales methods simultaneously so that the best option can be selected.
Investor clients will need to rely on their tax professionals for guidance more than ever because of the new cost basis law. This increased need for support presents a great opportunity for professionals to expand and annuitize their practice and create new business opportunities. Netbasis supports that opportunity.
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