1. Taxpayer identification number
Every taxpayer has their own unique identification number, which is provided when they file taxes. This number helps the IRS to identify the tax filer and track any changes in their filing information. In regards to capital gains and losses, this number is used by investors to accurately determine their capital gain or loss for each transaction
2. Date of purchase
The date on which the investment was purchased will help investors to determine when they have made a capital gain or loss, as this is used to calculate the length of time the asset has been held and its rate of return over that period
3. Description of investment
This provides investors with an overview of what type of investments they are involved in and helps them keep track of each transaction accurately. For example, details such as whether an investor has invested in stocks, bonds, mutual funds, etc., should be noted down
4. Name of company or individual selling the investment
Having the name and contact details for any parties involved in sales transactions allows investors to keep a record of who they have dealt with in the past. This comes in handy when they need to contact them for an invoice or clarification on information related to their investment
5. Date sold
The date of sale is important as it helps investors determine the length of time during which the asset was held and its rate of return over that period. This, along with details such as cost basis and sales proceeds, will help investors calculate their capital gain or loss accurately
6. Sales proceeds
The total amount received from selling an investment should be recorded to calculate profits gained from that particular transaction
7. Cost basis
This is the original purchase price plus any other costs associated with the purchase or sale of an investment. It should be noted down for use in calculating net capital gain or loss
8. Capital gain or loss
The difference between the sales proceeds and cost basis helps to determine whether a capital gain or loss has been made from any particular transaction
9. Adjusted cost basis if there is a capital gain/loss adjustment due to reinvestment of dividends and/or sale of a partial interest in the investment
If dividends are reinvested, investors are entitled to adjust their cost basis when calculating their capital gains or losses. This will help them keep track of all possible adjustments that need to be taken into account while making calculations
10. Net capital gain or loss
The overall net capital gain or loss made from any particular transaction should be calculated with all relevant amounts taken into account. This will help investors keep track of their total profits and losses accurately over time
