INTERPRETING COST BASIS ON YOUR STATEMENT

COST BASIS AND YOUR MONTHLY STATEMENT

For tax purposes, cost basis represents the original value of a security, generally the purchase price, adjusted for stock splits and other corporate actions, dividends, return of capital, and other events. On Raymond James Comprehensive Statements, cost basis is displayed for securities in nonqualified accounts. The unrealized gain/loss calculations that display represent the difference between market value and the cost basis. Executive Overview statements display unrealized gain/loss only.

WHAT SHOULD I USE COST BASIS ON MY STATEMENTS FOR?

The cost basis, unrealized and/or realized gain/loss calculations on your statements are provided as a courtesy to give our clients a basic snapshot of their potential capital gain/loss standings. Clients should not use these figures to prepare their taxes.

WHAT SHOULDN’T I USE COST BASIS ON MY STATEMENTS FOR?

Cost basis and gain/loss figures on monthly, quarterly and year-end statements should never be used as a substitute to Form 1099-B. Raymond James generally begins mailing 1099s in the middle of February. During the timeframe between year-end statements and the printing of 1099s, there are a number of events that can impact the cost basis and consequent gain/loss calculations for various positions in your account. Some examples of these events can include:

• Wash sales

• Income reallocation

• Inheritance

• Corporate actions

Using the cost basis and gain/loss from the year-end statement may result in a taxpayer using incorrect figures that differ from the official 1099-B. Additionally, cost basis on monthly statements should not be used to reconcile account fees, performance figures, balancing account activity as well as withdrawal and deposit totals.

©2015 Raymond James & Associates, Inc., member New York Stock Exchange/SIPC ©2015 Raymond James Financial Services, Inc., member FINRA/SIPC. Investment products are: not deposits, not FDIC/NCUA insured, not insured by any government agency, not bank guaranteed, subject to risk and may lose value.

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Please note changes in tax laws or regulations may occur at any time and could substantially impact your situation. While we are familiar with the tax provisions of the issues presented herein, as Raymond James Financial Advisors we are not qualified to render advice on tax or legal matters. You should discuss any tax or legal matters with the appropriate professional.