Page:United States Statutes at Large Volume 122.djvu/3878

 12 2 STA T .385 5 PUBLIC LA W 11 0– 3 4 3 —O CT. 3 , 2008 ‘ ‘ (1)INGE NE RAL.— I fabroke r is o th er w ise re qu ire d to m ake a retur n under subse c tion (a) with res p ect to the g ross proceeds of the sa l eofaco v ered securit y, the broker shall include in such return the information described in paragraph ( 2 ). ‘‘(2) AD D IT I O NAL IN F OR M ATION RE QU IRED.— ‘‘(A) IN GENERAL.— T he information required under paragraph (1) to be shown on a return with respect to a covered security of a customer shall include the cus - tomer ’ sad j usted basis in such security and whether any gain or loss with respect to such security is long-term or short-term (within the meaning of section 1222). ‘‘( B ) D ETERMINATION OF AD J U S TED B ASIS.— F or pur- poses of subparagraph (A)— ‘‘(i) IN GENERAL.—The customer’s adjusted basis shall be determined— ‘‘(I) in the case of any security (other than any stock for which an average basis method is permissible under section 1 0 12), in accordance with the first-in first-out method unless the cus- tomer notifies the broker by means of making an adequate identification of the stock sold or trans- ferred, and ‘‘(II) in the case of any stock for which an average basis method is permissible under section 1012, in accordance with the broker’s default method unless the customer notifies the broker that he elects another acceptable method under section 1012 with respect to the account in which such stock is held. ‘‘(ii) EXC E P TION FOR W AS H SALES.—E x cept as other- wise provided by the S ecretary, the customer’s adjusted basis shall be determined without regard to section 10 9 1 (relating to loss from wash sales of stock or securities) unless the transactions occur in the same account with respect to identical securities. ‘‘( 3 ) C O V ERED SECURIT Y .—For purposes of this subsection— ‘‘(A) IN GENERAL.—The term ‘covered security’ means any specified security acquired on or after the applicable date if such security— ‘‘(i) was acquired through a transaction in the account in which such security is held, or ‘‘(ii) was transferred to such account from an account in which such security was a covered security, but only if the broker received a statement under sec- tion 6 0 45 A with respect to the transfer. ‘‘(B) SPECIFIED SECURITY.—The term ‘specified security’ means— ‘‘(i) any share of stock in a corporation, ‘‘(ii) any note, bond, debenture, or other evidence of indebtedness, ‘‘(iii) any commodity, or contract or derivative with respect to such commodity, if the Secretary determines that adjusted basis reporting is appropriate for pur- poses of this subsection, and

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