Web-based Tool Alleviates Tax Stress for Mutual Funds, Hedge Funds and Brokers
Wolters Kluwer Financial Services today released the GainsKeeper® REIT Reporting Tool, a Web-based solution designed to track, calculate and report on all relevant tax adjustments related to Real Estate Investment Trust (REIT) securities.
REITs are securities that trade like stocks and invest in real estate through mortgages or property. Because they receive special tax considerations, it is possible for the tax character of distributions made by REITs to change at the end of the year. Mutual funds, ETFs, hedge funds and individual investors investing in REITs need to account for the changes in tax character when filing their tax returns, but the process is complicated by the fact that REITs generally report their tax information at or about the same time mutual funds, hedge funds and brokers are required to report it to investors.
“This is a major challenge for these tax professionals, who have a very limited amount of time—usually a few weeks or less—to process REIT reallocation data for their shareholders’ tax reporting,” explained Chuck Ross, general manager, GainsKeeper. “The GainsKeeper REIT Reporting Tool alleviates this stress by automatically importing and calculating this data for them. This eliminates the pain of manual calculations at tax crunch time and throughout the rest of the year.”
A Web-based application, the GainsKeeper REIT Reporting Tool imports REIT distribution data, including Return of Capital (ROC), IRS Section 1250 and long-term capital gain (LTCG) rates, to a client portfolio. It also reports on basis adjustments related to securities sold within the reporting time period, and provides a holdings report that details cumulative adjustments on a lot-by-lot basis.
“Our goal is to simplify the most difficult tax-reporting challenges facing financial institutions and individual investors,” said David Stephens, executive vice president of the Securities and Insurance unit at Wolters Kluwer Financial Services. “The GainsKeeper REIT Reporting Tool is yet another way we can help financial professionals save time and resources, and enable them to better serve their clients.”