The second step in getting started with cost basis is to make sure the matching method assigned to each account in PortfolioCenter is the same as the matching method assigned to each account at your custodian — and this method is the one you and your clients prefer. But how do you check? Below are the steps at 3 major brokers.
Note: Different brokers use different vocabulary. Matching method = cost basis disposable method = depletion method = accounting method. All these terms refer to the method used to determine which trade lots to sell in what order.
- log on to Schwab Institutional
- Click on the Cost Basis tab
- Click on Subscription Status
- Click View Preferences/Products next to each master account; It will produce a list of the accounts in that master.
- Check the Accounting Method column for the taxable accounts.
- log on to VEO
- select Preferences
- select User Preferences
- select Cost Basis
- select Print All Account Defaults; This will open a printer-friendly window that includes your depletion method. You do not actually need to print it.
- log on to Wealth Central
- Select Reports
- Open Administrative Reports by clicking on the + next to it
- Scroll down and select Cost Basis Disposal Method
- Run the report for All Accounts and select the Run Report button. You can run this report as a PDF or a spreadsheet.
- When you see “1 new message” in the upper right corner, click Refresh and your report will become clickable.