Non-Covered Security

Non-Covered Security

In the US, covered and non-covered securities fall either side of a brokerage firm’s obligation -- as laid down by the Securities and Exchange Commission in 2011 for the purposes of calculating client’s gross capital gains tax liabilities -- to disclose (in the case of covered securities) or not disclose (in the case of non-covered securities) details of their clients’ cost basis (i.e. the annual adjusted cost according to certain accounting standards rather than the purchase price) to the IRS.

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