Tax---stock selling question..

[sportsguy04]

Where is all my tax/stock selling experts at?

This summer I sold stock which came out to be about $3500... Does the company send me a 1099b form? Does it have the amount I sold my shares for including the total amount for $3500?

Anybody know?

THanks.

[bb_skoots]

Your broker should send you the end of year statement. (not sure of form #) You put this onto your schedule D in your tax return.

[dodger33]

They are required by law to send you a 1099-B which should have all the pertinent info on it

[sportsguy04]

Correct. Any of you not turn this stuff in and file it on your taxes?

[dodger33]

Not sure if I understand your question. Do you mean not turning cost basis info in?

[TheCentaur]

Where is all my tax/stock selling experts at?

This summer I sold stock which came out to be about $3500... Does the company send me a 1099b form? Does it have the amount I sold my shares for including the total amount for $3500?

Anybody know?

THanks.

Unless it's an online brokerage you should get a 1099 form showing gross sales amount. Generally it's up to you to supply the date you bought the stock and your basis (what you bought it for +commissions) on schedule D of your tax form.

If you simply don't report it there is about a 99% chance you will receive a shocking letter from the IRS about 6 months-1 year after the filing deadline stating that you had income from stock sales totalling whatever was on the 1099. They assume basis is 0 because you haven't supplied it to them. At the bottom of the letter your $3500 will have generated about $700 in taxes, $450 in late fees, and $250 in failure to file penalties. Then you'll have to beg the IRS to just let you pay the tax owed on your net proceeds.

[KingJD31]

Even if he's got an online broker they will give him a statement

Unless it's an online brokerage you should get a 1099 form showing gross sales amount. Generally it's up to you to supply the date you bought the stock and your basis (what you bought it for +commissions) on schedule D of your tax form.

If you simply don't report it there is about a 99% chance you will receive a shocking letter from the IRS about 6 months-1 year after the filing deadline stating that you had income from stock sales totalling whatever was on the 1099. They assume basis is 0 because you haven't supplied it to them. At the bottom of the letter your $3500 will have generated about $700 in taxes, $450 in late fees, and $250 in failure to file penalties. Then you'll have to beg the IRS to just let you pay the tax owed on your net proceeds.

[sportsguy04]

No worries. Thanks for the help guys. Ill put it in my taxes.

[TheCentaur]

Even if he's got an online broker they will give him a statement

An online statement yes. Some don't mail them

[dante1]

Correct. Any of you not turn this stuff in and file it on your taxes?

I did accidentally, an honest accident. Spent over one year getting my taxes correct.

[SBR_John]

An excellent idea is always request a transcript of everything the IRS has on file before you send in your taxes. You can simply call the IRS help number and after being on hold about 15 minutes you ask the rep to send you a "transcript for 2012".

That way you will know exactly what the IRS has. It can prevent a lot of headaches especially with stocks and derivative sales. Many times a broker will correct or amend what they report to the IRS, sometimes even after you have filed. But by requesting a transcript you guarantee you don't accidentally miss something.

[dante1]

great idea, didn't even know that was possible. Thanks

John, you second paragraph is exactly what happened to me in 2009, I believe it was Options house that did this. It will drive one crazy.

[dodger33]

John very sharp post. For most people it could be a waste of time but for you older and unorganized folks that have a lot of different tax documents to keep track of it is very wise.

If you have anyone with a half a brain and tax experience solving a non reporting of a stock sale issue should be a simple process. The IRS just takes forever in processing correspondence. But don't scare anyone and say they have to beg the IRS.

[d2bets]

An excellent idea is always request a transcript of everything the IRS has on file before you send in your taxes. You can simply call the IRS help number and after being on hold about 15 minutes you ask the rep to send you a "transcript for 2012".

That way you will know exactly what the IRS has. It can prevent a lot of headaches especially with stocks and derivative sales. Many times a broker will correct or amend what they report to the IRS, sometimes even after you have filed. But by requesting a transcript you guarantee you don't accidentally miss something.

So you just ask over the phone and then they mail it to you? How long does it take to get it? What exactly do they send - copies of everything they received for the year on you?

[TheCentaur]

But don't scare anyone and say they have to beg the IRS.

Yes no one should fear the IRS

What are you going to do, tell them to take the interest and penalties and shove them?

[dodger33]

If it was a mistake and you are in the right, yes all you have to do is write a simple letter showing the facts and it all goes away. It's a very easy process if you know what you are doing or hire someone that does.

[dodger33]

d2bets yes, they can either fax or mail it to you. Fax comes the same day but the mail takes awhile to process. They send a computerized print out of everything that they have that was sent to them with your ssn on it. If you are going to do this it is best to wait until all the information has been sent in and processed by the IRS.

[dante1]

John offered a very intelligent and wonderful idea. However, when I think about that process now I don't think it would have helped me, although I will do it this year. I am almost positive that OptionsHouse sent me correct statements long after the deadline. So if you have already sent in your taxes it wouldn't have helped. Naturally you can still do an amended return but if the investment house is very late with corrected forms you are out of luck and must redo.