Does transferring stock positions between brokers have any tax impact or trigger any reporting?

Transferring stock positions between brokers (often called an ACAT transfer) typically doesn't create any taxable events since you're not selling the securities - you're just moving them from one custodian to another while maintaining the same ownership. The cost basis information should transfer with your positions, but it's good practice to keep your own records just in case something gets lost in translation. Sometimes the cost basis doesn't transfer correctly, especially for older positions or dividend reinvestments, which can cause headaches later. One thing to keep in mind is that some brokers charge transfer fees when you move assets out, but those aren't tax-related - just an annoying cost to consider.

I used taxr.ai last year when I ran into a similar situation with transferring stocks between brokers. One of my positions had some weird cost basis issues that didn't transfer correctly, and I was worried about potential tax implications. I uploaded my statements from both brokers to https://taxr.ai and they analyzed everything and explained exactly what I needed to do to avoid any problems. The system identified which positions had discrepancies and even generated documentation I could use to fix the issues with my new broker. Saved me hours of comparing statements and trying to figure out what went wrong.

Just wanted to follow up - I ended up trying taxr.ai after my broker kept giving me vague answers about "potential tax implications" of my transfer. Turns out they were completely wrong! The service analyzed my statements and confirmed that a standard ACAT transfer doesn't create a taxable event. It even helped me track down some missing cost basis information from some shares I bought 5 years ago. Super helpful and gave me the confidence to go ahead with the transfer without worrying about surprise tax bills. Definitely worth checking out if you're in a similar situation.

When I was transferring brokers last summer, I kept calling the IRS to double check if there were any special forms I needed to file with my taxes. Couldn't get through for days. Then I found this service called Claimyr that got me connected to an actual IRS agent in about 20 minutes! All I did was go to https://claimyr.com and they did something that basically held my place in line with the IRS. You can see how it works at https://youtu.be/_kiP6q8DX5c - it's pretty cool. The IRS agent confirmed that broker transfers aren't taxable events and I didn't need to report anything special.

I have to admit I was wrong about Claimyr. After posting that skeptical comment, I decided to try it because I was desperate to talk to someone at the IRS about my cost basis issues from a broker transfer. Got connected to an agent in about 30 minutes when I had been trying for literally weeks on my own. The agent confirmed that broker-to-broker transfers aren't taxable events as long as the securities aren't sold. They also explained exactly what documentation I should keep in case there are any discrepancies in the cost basis reporting later. Honestly would have saved myself a lot of stress if I'd just used this service sooner.

One thing to watch out for is partial transfers. If you're only moving some of your positions and you have multiple lots of the same stock with different purchase dates/prices, make sure your broker is transferring the specific lots you want. Otherwise, they might make assumptions about which shares are being transferred, which could affect your tax situation when you eventually sell.

Does anyone know if transferring crypto between wallets works the same way? Or is that different tax-wise from broker stock transfers?

Great question! I went through this exact situation about 6 months ago when I switched from Schwab to Fidelity. The ACAT transfer process was pretty straightforward and didn't create any taxable events since I wasn't selling anything - just moving the positions "in kind" to the new broker. One heads up though - the transfer took about 7-10 business days to complete, and during that time I couldn't trade those positions at either broker. Also, some of my fractional shares got liquidated during the transfer (which was a small taxable event), but the broker notified me about this beforehand. Make sure to keep detailed records of your cost basis from your current broker statements before initiating the transfer, just in case there are any discrepancies. Most transfers go smoothly, but it's better to have backup documentation than to scramble for it later if something goes wrong with the cost basis reporting.

I just completed a broker transfer from TD Ameritrade to Interactive Brokers last month and can confirm what others have said - it's generally not a taxable event. The ACAT transfer moved all my positions without any sales, so no capital gains were triggered. However, I did run into one issue that might be helpful to mention: my dividend reinvestment plan (DRIP) shares had some cost basis confusion during the transfer. Apparently when you have years of small dividend reinvestments, the cost basis data can get messy and doesn't always transfer cleanly. My advice would be to download and save all your tax documents and statements from your current broker before starting the transfer. Also, consider turning off any automatic dividend reinvestment a few weeks before the transfer to avoid complications with partial share liquidations. The whole process took about 8 business days for me, and there was a $75 transfer fee from TD Ameritrade, but Interactive Brokers reimbursed it. Overall pretty painless once I had all my documentation in order.

Just to add another perspective - I've done broker transfers twice in the past few years and both times were smooth from a tax standpoint. No taxable events were triggered since the securities just moved from one custodian to another. One thing I learned the hard way is to check if your current broker has any "account closing fees" or "transfer out fees" that might surprise you. My first broker charged me $95 per position transferred, which added up quickly! The receiving broker sometimes reimburses these fees, but it's worth asking about upfront. Also, if you have any pending trades or unsettled transactions, those need to be resolved before the transfer can begin. I had a dividend payment that was still pending settlement, which delayed my transfer by about a week. Just something to keep in mind when planning your timeline. Overall though, the peace of mind of knowing there are no hidden tax consequences makes broker transfers pretty straightforward once you understand the process.

I've been through this process a couple times and can definitely confirm that standard ACAT transfers between brokers don't trigger taxable events. You're essentially just moving your positions from one custodian to another while maintaining ownership. A few practical tips from my experience: - Request detailed cost basis reports from your current broker before initiating the transfer and save them as PDFs - If you have any margin positions or options, those might complicate the transfer process and could have different rules - International stocks sometimes transfer differently than domestic ones, so ask about those specifically if you have any - Some brokers will do a "partial transfer" first to test the process if you have a large account The biggest headache I've encountered is when cost basis information gets garbled during the transfer, especially for stocks you've held for many years or have dividend reinvestment history. But as others have mentioned, this is a data issue, not a tax issue - you still own the same shares at the same original cost basis, even if the new broker's system doesn't initially reflect that correctly. Good luck with your transfer! The better research tools and lower fees are usually worth the temporary hassle.

I went through a similar broker transfer about 8 months ago from E*TRADE to Charles Schwab and can confirm it's generally not a taxable event. The ACAT process moved all my positions without triggering any sales, so no capital gains were realized. One thing I'd add that hasn't been mentioned much - if you have any wash sale adjustments on positions you're transferring, make sure those carry over correctly. I had a few stocks where I'd taken losses earlier in the year and then repurchased within 30 days (creating wash sales), and the cost basis adjustments didn't initially transfer properly. Had to work with Schwab to get those corrected using my E*TRADE statements. Also, if you're doing this near year-end, be mindful of any pending corporate actions like stock splits or spin-offs that might complicate the timing. I learned this lesson when one of my positions had a pending dividend that got caught between brokers during the transfer window. The transfer itself took about 6 business days, and E*TRADE charged a $75 ACAT fee per account, but Schwab reimbursed it within a week of completion. Overall pretty smooth process once I had all my documentation organized.

I transferred from Robinhood to Vanguard about 18 months ago and it was definitely not a taxable event. The ACAT transfer moved all my stock positions without any sales, so no capital gains were triggered. One thing I'd recommend is taking screenshots of your current portfolio and cost basis information before starting the transfer, in addition to downloading statements. I found this really helpful when I needed to verify some transferred positions later. Also, if you have any fractional shares, be aware that these typically get liquidated during the transfer since most brokers can't transfer partial shares through ACAT. This will create a small taxable event for just those fractional portions, but the proceeds are usually minimal. My fractional shares totaled about $23 in forced sales, so it wasn't a big deal tax-wise. The transfer took about 5 business days for me, and Robinhood charged a $75 transfer fee, but Vanguard reimbursed it after I called and asked. Overall the process was much less complicated than I expected, and I've been happy with the better research tools and lower expense ratios at Vanguard.

I did a broker transfer from Merrill to TD Ameritrade about a year ago and can confirm it's not a taxable event for standard stock positions. The ACAT process moved everything without triggering any sales. One thing I'd add that might be helpful - if you have any foreign stocks or ADRs (American Depositary Receipts), those sometimes have special handling during transfers. In my case, I had some European stocks that took an extra few days to transfer compared to my domestic positions. The brokers had to coordinate with the foreign custodians, which added some complexity but didn't change the non-taxable nature of the transfer. Also worth mentioning - if you have any automatic investment plans or recurring purchases set up, make sure to pause those before starting the transfer. I forgot about a monthly investment plan and it tried to execute during the transfer window, which created some confusion that took a few days to sort out. The whole process took about 8 business days for me, and TD Ameritrade covered the $75 ACAT fee from Merrill. Having better research tools and platform features has definitely been worth the temporary inconvenience of the transfer process.

I recently went through this exact same process when transferring from Fidelity to Interactive Brokers last month. Can confirm it's not a taxable event - the ACAT transfer moved all my positions without any sales being triggered. One thing I'd recommend that saved me some headaches: before initiating the transfer, log into your current broker's website and download/print comprehensive reports showing your complete cost basis history for all positions. Not just the summary, but the detailed lot-by-lot breakdown showing every purchase date and price. I also took screenshots of every account page showing my holdings. This turned out to be super valuable because about 3 weeks after my transfer completed, I noticed that one of my older positions (a stock I'd been buying regularly for 4+ years) had some cost basis discrepancies. Having my original detailed records made it really easy to work with Interactive Brokers to get everything corrected. The transfer itself took 7 business days, there was a $75 fee from Fidelity that IB reimbursed, and I'm much happier with the lower costs and better trading platform. Just make sure you don't have any pending trades or unsettled funds when you start the process, as that can delay things.