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Old 02-20-2011, 06:21 PM
 
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This is the 1099-B Proceeds from Broker And Barter Exchange Transactions.

This came with my 1099 Consolidated statement from Edward Jones.

This has 1099-DIV and 1099-B. I know I have to file the 1099-DIV but what about the 1099-B?

What is the purpose of 1099-B?

Federal Income Tax Withheld (Box 4) shows all $0.00.
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Old 02-20-2011, 06:32 PM
 
Location: Bradenton, Florida
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Technically, the B would show capital gains (and losses), but many brokerage firms give you a consolidated statement that contains capital gains, dividends, and interest accounts. And call it a B.

Technically, you don't file the 1099, but use it to put the information on a form or schedule.
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Old 02-20-2011, 06:42 PM
 
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Quote:
Originally Posted by TKramar View Post
Technically, the B would show capital gains (and losses), but many brokerage firms give you a consolidated statement that contains capital gains, dividends, and interest accounts. And call it a B.

Technically, you don't file the 1099, but use it to put the information on a form or schedule.
There is 1099-DIV and 1099-B. I file the 1099-DIV every year which has Box 1a Total ordinary Dividends, Box 1b Qualified dividends, Box 6 Foreign Tax Paid. All others have 0.00 in there including Box 4 Federal income tax withheld.

I don't think I have been reporting 1099-B though. Will I get penalized for this? I have not recieved any notice from the IRS. Should I call IRS?

Are you talking about Schedule D?
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Old 02-20-2011, 06:55 PM
 
Location: Bradenton, Florida
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Quote:
Originally Posted by Texas User View Post
There is 1099-DIV and 1099-B. I file the 1099-DIV every year which has Box 1a Total ordinary Dividends, Box 1b Qualified dividends, Box 6 Foreign Tax Paid. All others have 0.00 in there including Box 4 Federal income tax withheld.

I don't think I have been reporting 1099-B though. Will I get penalized for this? I have not recieved any notice from the IRS. Should I call IRS?

Are you talking about Schedule D?

Yes, there is 1099-B, 1099-DIV, 1099-INT, 1099-G, etc...what I was saying that I'm seeing brokerage firms like Edward Jones send out a consolidated notice (sometimes 30 and 40 pages) that includes all stock purchases, sales, dividends, and interest. Sometimes they still go ahead and call it a 1099-B though.

If you have not realized any capital gains, you would not be penalized. You can buy all you want, you only need to report it when you sell and realize a gain or loss. There are also "wash sales" where you sell one stock and immediately reinvest into what is essentially the same stock.

Any capital gains or losses would be reported on schedule D, as well as gains or losses on collectibles.
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Old 02-20-2011, 08:30 PM
 
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The IRS compares the gross proceeds from the sale of securities reported on 1099B with the gross sales price for securities sold as reported on schedule D and if its is way off, you are more likely to get audited. This is a shame because the gross proceeds of rollover investments like certificates of deposit are reported there and grossly inflate that number. I don't know any way to avoid those "audit points" if you are rolling investment products.
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Old 02-21-2011, 11:30 AM
 
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Quote:
Originally Posted by TKramar View Post
Yes, there is 1099-B, 1099-DIV, 1099-INT, 1099-G, etc...what I was saying that I'm seeing brokerage firms like Edward Jones send out a consolidated notice (sometimes 30 and 40 pages) that includes all stock purchases, sales, dividends, and interest. Sometimes they still go ahead and call it a 1099-B though.

If you have not realized any capital gains, you would not be penalized. You can buy all you want, you only need to report it when you sell and realize a gain or loss. There are also "wash sales" where you sell one stock and immediately reinvest into what is essentially the same stock.

Any capital gains or losses would be reported on schedule D, as well as gains or losses on collectibles.
I found out that my FA tranferred money from my Single brokerage account to Roth IRA to fund my Roth IRA. I knew about this but I did not think I would have to file it. How come I have not got any notice from the IRS. I may have missed this for 2008 and 2009. Should I call IRS to find out for sure? I can then send a Amended return?
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Old 02-21-2011, 01:14 PM
 
Location: Bradenton, Florida
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You may not have to, it would depend on how much you originally deposited into the brokerage account, and how much went into the IRA. If you put $3000 into the brokerage account, and he funded your IRA with $3000, then that's already your money, and you've been taxed on it. If you put $2000 in, and he funded the IRA with $3000, then you had a gain of $1000, and would have to claim the gain.

You need to talk with the broker--I've sometimes found that the consolidated statements will show proceeds, but they will not show the purchase price. That's often dependent on whether they use FIFO or LIFO.
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Old 02-21-2011, 03:00 PM
 
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Originally Posted by TKramar View Post
You may not have to, it would depend on how much you originally deposited into the brokerage account, and how much went into the IRA. If you put $3000 into the brokerage account, and he funded your IRA with $3000, then that's already your money, and you've been taxed on it. If you put $2000 in, and he funded the IRA with $3000, then you had a gain of $1000, and would have to claim the gain.

You need to talk with the broker--I've sometimes found that the consolidated statements will show proceeds, but they will not show the purchase price. That's often dependent on whether they use FIFO or LIFO.
I use H&R Block online free software so I did the Roth IRA worksheet and reported the amount I put and also the market value at the end of year. Is that Schedule D?

2008 and 2009 : $5K was transferred from Brokerage account to Roth IRA to maximize the funding for those years. I have never withdrawn from Roth IRA though nor the Brokerage account. However, I did file the 1099-DIV's.

How come I have not been audited yet? IRS has 3 years to audit me right according to the SOL law? After that, they can't do anything right?

To be on the safe side, should I go ahead and mail in the 1040x Amended for 2008 and 2009? If yes, can I put this in same envelope for both years?
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Old 02-21-2011, 04:21 PM
 
Location: Bradenton, Florida
27,237 posts, read 26,926,017 times
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You won't automatically be audited if you make a mistake.

The concern is whether you had gains in the brokerage account that were not reported. Gains do not happen unless you sell the stocks purchased or redeem the bonds (depending on what was purchased). If it was funded with money you deposited into the account, then you are already being assessed taxes on that.

And those would have been reported on Schedule D.
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Old 02-21-2011, 04:39 PM
 
12,673 posts, read 13,428,463 times
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Quote:
Originally Posted by TKramar View Post
You won't automatically be audited if you make a mistake.

The concern is whether you had gains in the brokerage account that were not reported. Gains do not happen unless you sell the stocks purchased or redeem the bonds (depending on what was purchased). If it was funded with money you deposited into the account, then you are already being assessed taxes on that.

And those would have been reported on Schedule D.
You mean when my FA transferred the money to Roth IRA from the Brokerage account? I would never want to withdraw money from an account in a loss though. If he did transferred at a loss then I lost money in my Brokerage account right?
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