When you sell a stock, you will have a capital gain or loss that you will be reporting on your taxes.

With the new cost basis reporting law, you will need to make sure that the amount of these gains and losses agrees with what your broker shows.

To avoid delays figuring out any discrepancies at tax time, we'd highly recommend that you institute a new step each month in preparing your club records. Every time you sell a stock, compare the gains/losses on the bivio Capital Gains and Losses Report with the realized gain/loss report you can get from your broker. If there are any discrepancies, that gives you lots of time to figure out why they are there and to make whatever corrections are necessary to fix them. And, if you need any help, you won't be trying to get it during the crunch of tax season questions.

This is especially important if you are selling multiple lots of a stock. With so many opportunities for error, it can sometimes take a while to straighten things out.

It only takes a minute to do the double check and most times, you probably won't find any issues. But if you do, you'll be glad you handled it sooner rather than later.