Brokers Must Classify|Gains on Client Sales

     WASHINGTON (CN) – Securities brokers will have to classify their customers’ gains as short term or long term when reporting sales to the Internal Revenue Service, according to a new IRS rule.
The rule is effective for sales after Jan. 1, 2011.
     The rules also require taxpayers to notify their brokers of how to compute the basis, or relative gain or loss, considering changes in the value of the security over the life of the taxpayer’s ownership of it.
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