CI Review – New Cost Basis Tools from Invesco and Dreyfus

by on Jan 11, 2012

altBoth Invesco and Dreyfus unveiled new client tools – Invesco Hypothetical Calculation tool and Dreyfus Cost Basis Hypothetical Calculation – aimed at helping investors calculate hypothetical loss and gain using different cost basis methods. Both tools are located in the firms’ respective private client sites.

Key Features
The new cost basis tools from Invesco and Dreyfus present investors with a field to enter either a dollar or share amount to be redeemed, as well as a dropdown menu for choosing cost basis method. Upon submitting the data, the tools generate tables of short-term and long-term gain/loss as well as wash sales for covered and non-covered shares.  Additionally, each tool also provides information on shares used, providing a breakdown of the amount of covered and non-covered shares.

Final Thoughts
The new tools provide help for investors trying to select a cost-basis method by demonstrating the effect that different options will have on gain/loss. Under recently enacted IRS regulations, cost basis method must be reported for all funds purchased in 2012. Dreyfus’ and Invesco’s new tools provide an easy-to-use and no-frills method for estimating gain/loss, helping investors make the best possible decisions in choosing cost basis methods.


Dreyfus Hypothetical Cost Basis Calculation