As part of the Emergency Economic Stabilization Act of 2008, mutual fund companies will be required to report cost basis information to shareholders and to the Internal Revenue Service (IRS) on mutual fund shares acquired after January 1, 2012.
Shareholders may choose from a variety of cost basis accounting methods. The following methods are available for direct Artisan Shareholders:
- AVERAGE COST (ACST) — the purchase price of all covered shares in the account are averaged
- FIRST IN, FIRST OUT (FIFO) — depletes shares beginning with the earliest acquisition date
- LAST IN, FIRST OUT (LIFO) — depletes shares beginning with the most recent acquisition date
- HIGH COST (HIFO) — depletes shares beginning with the most expensive shares
- LOW COST (LOFO) — depletes shares beginning with the least expensive shares
- LOSS/GAIN UTILIZATION (LGUT) — depletes shares with losses prior to shares with gains and short-term shares prior to long-term shares
- SPECIFIC LOT IDENTIFICATION — depletes shares according to the lots chosen by the shareholder
If you are currently able to access account information electronically, you may also elect your cost basis accounting method electronically; click here to login to Artisan Account Access.
You may want to consult your tax advisor to determine which method best suits your individual tax situation. If you do not elect a method the fund default method of Average Cost will be used. Your elected cost basis method will be applied to future accounts opened in the Artisan Funds with the same account type and registration.
For more information on the new regulation and cost basis methods please click here, or call 800.344.1770.
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