Cost Basis Method

The Cost Basis Method (CBM) for all non-option orders that are closing transactions can be determined by enabling the Cost Basis Method column and then selecting the View/Edit link associated with a closing transaction.

To change Account level CBM: 

On Schwab.com, go to Service > Account Settings > Cost Basis Method and click the Change link). Changes are effective the following day.

To change Order level CBM:

• When placing an order, choose your preferred cost basis method in the Trade tab.
• To change it after you've placed the order, click View/Edit in the Cost Basis Method column of the Order Status tab* and then click Change to select a new cost basis method for the order.
• You can also change order-level CBM on Schwab.com. Go to Trade > Order Status and click the View/Edit link of the order you want to change, then click Change.

NOTE: IRS regulations allow you to change the cost basis method for your order up to midnight ET on settlement date. The change will update the cost basis method for all unsettled portions of your equity orders (including both open and filled transactions).

Notice you must log on to your account on Schwab.com to make these changes.

*To view your Cost Basis Method in Streetsmart.com, enable the Cost Basis Method column in your Order Status tab (Customize > Order Status and check the Cost Basis Method column), and click the View/Edit link. This will display the cost basis method for that order.

To learn more about the cost basis methods available to you and how cost basis affects your tax circumstances, log on to Schwab.com and go to Guidance > Taxes > Cost Basis Reporting.