What is cost basis?
Cost basis is the price you paid to purchase a security plus any additional costs such as broker's fees or commissions. When you sell a security, your tax liability is determined by how much you spent to buy the security (cost basis) and your sales price. Updating your cost basis can help you manage your tax liability while at the same time improving your reporting accuracy. You can update the actual cost basis for eligible positions in your account.
Note: You are responsible for complying with the IRS rules governing these elections. Before you make your decision, you may want to Learn More About Cost Basis Methods and consult with a tax advisor.
