Death & Taxes
“Who can tell me when will my client be able to access the 1099 or K‑1 for this alternative investment?”
Who is the issuer?
A client with an IRA gets a form that reports contributions, RMDs, Roth conversions, rollovers, and FMV.
What is Form 5498?
A fund position was journaled from one Schwab account to another, and now the advisor is asking why the cost basis didn’t follow the position.
What is “cost basis does not transfer when a fund is journaled”?
During a Publix transfer, Schwab sends a Letter of Acceptance but needs the client to follow up directly. Why?
What is Publix will only communicate with the client?
A client wants to purchase a certificated alternative investment and asks what document authorizes Schwab to process the purchase.
What is a Custody Letter of Authorization?
The advisor asks, “How do I request an update to cost basis?”
What is the Cost Basis Edit Form?
An advisor asks, “When does form 5498 usually get posted?”
What is May?
A fund processes as a cash swap, and Schwab shows proper cost basis tracking. Why?
What is Schwab processed a redemption and buy?
A client wants to redeem Publix shares and asks what must be completed before Schwab can mail the certificate to Publix.
What is a completed letter of instruction for redemption?
An advisor asks what must be true before Schwab can custody a private stock held in physical certificate form.
What is the asset must meet Schwab’s possession and control requirements?
An advisor asks why their client received a Form 990‑T for an alternative investment held in a qualified account.
What is UBTI generated by the alternative investment?
An advisor wants to re‑register an alternative investment from a qualified account to a taxable account to satisfy an RMD.
What is the IRA Distribution Form and fund paperwork if applicable?
An advisor holds a OneSource K‑1 fund and asks why dividend reinvestments and pass‑through tax data aren’t reflected in cost basis.
What is “Schwab only tracks buys and sells for K‑1 funds on OneSource”?
An advisor asks why a Publix position sits in TRF status for an extended period before fully booking.
What is Schwab is waiting for Publix to issue a new certificate?
An ACAT transfer of a certificated alternative investment fails and reverses. What action should be taken next?
What is creating an AI Physicals case to track the request?
“What’s the latest extension deadline mentioned for K‑1 funds?”
What is 09/15?
A client receives Form 5498 and asks, “Do I need to file this with my tax return?”
What is "no, keep it with tax records; it’s informational and not filed with the return”?
On the OneSource platform, Schwab tracks all 1099 fund cost basis for these activity types.
What are purchases, redemptions, and REI dividends?
An advisor submits a broker‑dealer statement to transfer Publix shares into Schwab, and it’s rejected. What document is required instead?
What is a Publix ESOP or 401(k) statement?
An advisor asks how to confirm in BlueZone whether a position is a physical stock certificate.
What is checking for product code “COM” or symbol code “SKC” under APOS ?
An advisor says, “My client also received an 8868, what does that usually mean?”
What is an extension related to a 990‑T filing?
An advisor asks what type of tax form Schwab issues for redemptions on certain K‑1 funds.
What is a 1099‑B?
An advisor asks why basis behavior differs when capital balance funds go up versus down in value.
What is decreases wipe basis while increases do not?
A client wants to transfer physical Publix certificates into Schwab. What must always be included with the transfer paperwork?
What is a signed letter of instruction to Publix Shareholder Services?
A client wants Schwab to custody a private stock that is not certificated and is not on the AIP system.
What is Schwab cannot custody the position?