Cost or other basis
  Definition
Shows the cost or other basis of the securities sold. See the Schedule D (Form 1040) instructions, Form 8949 instructions or Publication 550, Investment Income and Expenses (Including Capital Gains and Losses) for details about basis.

How to transfer information to IRS Form 1040

Include this information on Form 8949. Carry the appropriate information onto Schedule D of Form 1040 or 1040A. If shares were held one year or less, include the amount on Schedule D, Part I Short-Term Capital Gains and Losses, line 2, column (e) Cost or other basis. If shares were held more than one year, include the amount on Schedule D, Part II Long-Term Capital NOTE: Gains and Losses, line 9, column (e) Cost or other basis.

As part of the Energy Improvement and Extension Act of 2008, cost basis information is required to be reported to the IRS and you on Form 1099-B for covered shares redeemed. The cost basis information will be reported utilizing your elected method or the fund default. For redemption of noncovered shares, average cost basis information may be provided to you when it is available, but will not be reported to the IRS.