IRS Form 1099-B walkthrough (Proceeds from Broker and Barter Exchange Transactions)
ฝัง
- เผยแพร่เมื่อ 7 ม.ค. 2024
- Subscribe to our TH-cam channel: / @teachmepersonalfinanc...
Please feel free to check out our article, where we've written step by step instructions to help you walk through this tax form! www.teachmepersonalfinance.co...
If you’re looking for tutorials for other IRS Forms that you can file directly through the IRS website, check out our free fillable forms page: www.teachmepersonalfinance.co...
Here are links to articles we've written about other tax forms mentioned in this video:
IRS Form 8822, Change of Address
Article: www.teachmepersonalfinance.co...
Video: • IRS Form 8822 walkthro...
IRS Form 8822-B, Change of Address or Responsible Party - Business
Article: www.teachmepersonalfinance.co...
Video: • IRS Form 8822-B walkth...
IRS Schedule D, Capital Gains and Losses
Article: www.teachmepersonalfinance.co...
Video: • IRS Schedule D Walkthr...
IRS Form 8949, Sales and Dispositions of Capital Assets
Article: www.teachmepersonalfinance.co...
Video: • IRS Form 8949 walkthro...
IRS Form W-9, Request for Taxpayer Identification Number and Certification
Article: www.teachmepersonalfinance.co...
Video: • IRS Form W-9 walkthrou...
IRS Form W-2, Wage and Tax Statement
Article: www.teachmepersonalfinance.co...
Video: • IRS Form W-2 Walkthrou...
IRS Form 1099-INT, Interest Income
Article: www.teachmepersonalfinance.co...
Video: • IRS Form 1099-INT walk...
IRS Form 1099-OID, Original Issue Discount,
Article: www.teachmepersonalfinance.co...
Video: • IRS Form 1099-OID walk...
IRS Schedule 6781, Gains and Losses From Section 1256 Contracts and Straddles
Article: www.teachmepersonalfinance.co...
Video: • IRS Form 6781 Walkthro...
IRS Schedule B, Interest and Ordinary Dividends
Article: www.teachmepersonalfinance.co...
Video: • IRS Schedule B Walkthr...
IRS Schedule C, Profit or Loss From Business
Article: www.teachmepersonalfinance.co...
Video: • IRS Schedule C Walkthr...
IRS Schedule E, Supplemental Income
Article: www.teachmepersonalfinance.co...
Video: • IRS Schedule E walkthr... - แนวปฏิบัติและการใช้ชีวิต
Thank you
Hello, how would I report a 1099-B (on my client's 2023 Tax Return) with
1. Applicable Checkbox "X"
2. with no "Date Acquired"
3. checked in box 5 and
4. FATCA filing requirement "not checked" ?
Thank you!
Hi! Can I ask why the copy B for recipient of the form 1099-B I received states, "Long-term transactions for which basis is NOT reported to the IRS; report on Form 8949, Part II with Box E checked?
Sometimes the custodian or financial institution holding your assets has incomplete records of when you purchased securities, or what the cost was (basis). This happens a lot with assets that are transferred between institutions (like when you move from one financial advisor to another), with assets that have been held for a very long time, or with investments where someone has done dollar-cost averaging (where you buy a certain amount each month for a long time).
So if the financial institution has your cost basis, they will report it on your Form 1099-B. If not, then it would be your responsibility to recreate it. And it's in your best interest to do so, as recreating your tax basis will result in a lower tax bill than if you don't (because it will look like you purchased the assets for $0, and you'd pay capital gains tax on the entire sale, instead of just the profit).
Hello, quick question for you about 1099-B. I use cash app to deposit and withdraw to my trading platform do I report just 1099-B ?( even thought it doesn’t show my gain and losses but only shows proceeds) or manually report my gain and losses from my trading history?
You should probably report what was reported to you on Form 1099-B. You would likely use IRS Form 8949 in conjunction with Schedule D (see below)
IRS Form 8949, Sales and Dispositions of Capital Assets
Article: www.teachmepersonalfinance.com/irs-form-8949-instructions/
Video: th-cam.com/video/O5P_L9zdXME/w-d-xo.html
IRS Schedule D, Capital Gains and Losses
Article: www.teachmepersonalfinance.com/irs-schedule-d-instructions/
Video: th-cam.com/video/wpPXe8z40lY/w-d-xo.html
Playlist: th-cam.com/play/PLYHzJrFFCrpx8fntib5MeAQ7xMEfvPVHZ.html
@@teachmepersonalfinance2169 Thank you very much.
Can I use this form to claim the securities back from my vehicle I paid off?
It seems like there's a lot going on with your situation that I'm not aware of. But to my knowledge, I don't think you'd be able to use this form for that purpose.
I am reviewing my IRS transcripts and see 1099 B forms filed but I never received copies. This has been for the past few years. Do I just report what I can see? Not all the info is available but I do see $ amounts.
I'm not sure I'd be inclined to run right out and amend a bunch of tax returns to report this information right away.
First thing that I would suggest is to discuss with a tax professional, such as a CPA or enrolled agent (after tax season, of course), to get their opinion. In some cases, the cost of filing an amended return might not warrant doing so (like paying $150 to report $20 of 1099-B income). In other cases, you might absolutely consider amending one or more returns. But I'd want a tax professional reviewing my information and helping me with that decision.
Second thing would be to reach out to your brokerage firm to see why you haven't been receiving copies. Perhaps they've got the wrong address on file (or wrong email address for paperless copies). But I'd work that out with them to avoid this for next year. Also, you might see if you can access a statement online.
One thing that has happened in recent years is that firms often consolidate statements into one Form 1099 (literally called a consolidated 1099). You might see items that are reported on Form 1099-INT, Form 1099-DIV, and Form 1099-B in one statement (although Form 1099-R should be in a different statement).
I've inserted links to the other forms for reference (just in case you wanted to see if any of this reported information looked familiar on the statements that you do receive).
IRS Form 1099-INT, Interest Income
Article: www.teachmepersonalfinance.com/irs-form-1099-int-instructions/
Video: th-cam.com/video/WBnysIIwrl0/w-d-xo.html
IRS Form 1099-DIV, Dividends and Distributions
Article: www.teachmepersonalfinance.com/irs-form-1099-div-instructions/
Video: th-cam.com/video/erjDQs338DA/w-d-xo.html
IRS Form 1099-R Instructions (Distributions from Pensions, Retirement Plans, etc)
Article: www.teachmepersonalfinance.com/irs-form-1099-r-instructions/
Video: th-cam.com/video/xyIt6e33sso/w-d-xo.html
@@teachmepersonalfinance2169 Wow thanks for responding. I was not expecting a response at all and for all this information I must show some gratitude. I have been trying to earn this stuff for the past year or 2 and I found a huge desire to report almost anything and everything. If I have a receipt then I must report it. Anyone I spend more then 600 is definitely getting a 1099 from me in one form or another. I am always the creditor or payor and I am always needing to report these events. I remember back in the day when I was a small business owner a a painter and businesses would ask for my insurance and w9. Then later I would receive a 1099. Now I know why. I was the recipient then.
Is it possible if you could go over tax forms 2848 and 4852?
Here are links to articles and videos that I created for both forms:
IRS Form 2848, Power of Attorney and Declaration of Representative
Article: www.teachmepersonalfinance.com/irs-form-2848-instructions/
Video: th-cam.com/video/VOeWSHKXr1g/w-d-xo.html
IRS Form 4852, Substitute Forms
Article: www.teachmepersonalfinance.com/irs-form-4852/
Video: th-cam.com/video/_ribH3TpfWw/w-d-xo.html
I did more than a 1000 daytrades in stocks(year 2023), do the accountant have to file each transaction I did? will they charge a lot more for that?? the 1099 consolidated has many many pages how much will that be? Thank you
I don't know how your accountant will handle your transactions. Generally, accountants try to summarize transactions as much as they are able to, both to reduce your cost, as well as to reduce their time working on your tax return. With that said, if you have a lot of pages on your Form 1099, you could expect your accountant to charge more, if they cannot summarize your transactions.
If I received a 1099-b and 1099- comp, am I suppose to factor in both 1099s onto one form ?
You should be able to enter both form 1099s into your tax return separately from each other. If you cannot, then you would have to find similar items (1099-COMP sometimes might contain 1099-b, 1099-INT, or 1099-DIV information). Here's some info on Form 1099-INT and Form 1099-DIV for reference:
IRS Form 1099-INT, Interest Income
Article: www.teachmepersonalfinance.com/irs-form-1099-int-instructions/
Video: th-cam.com/video/WBnysIIwrl0/w-d-xo.html
IRS Form 1099-DIV, Dividends and Distributions
Article: www.teachmepersonalfinance.com/irs-form-1099-div-instructions/
Video: th-cam.com/video/erjDQs338DA/w-d-xo.html
If a 1099B was received for stock sales within a Trad IRA but no money was withdrawn, does the 1099B still need to be reported?
You shouldn't have received a Form 1099-B for trades that occurred within an IRA. If you had withdrawn money from the account, you'd receive a Form 1099-R.
It might be worth double-checking the account number field, just to make sure that it matches the IRA account, as well as the trades/transaction info to see if the numbers match up.
Assuming that you've already done that, I'm wondering if there's anything about your account that warranted reporting. Is there anything out of the norm about your IRA or other accounts? Any recent rollovers or transfers?
Taking a closer look at the consolidated 1099 form, the account # listed is for an individual TOD - not the traditional IRA which are held in parallel in the brokerage account. Needless to say, I will be reporting what’s on the sheet. Thanks for what you do.
If I received a 1099-b, do I report the proceeds & cost basis on form 8949 or schedule d ?
You should definitely report proceeds and cost on IRS Form 8949. Once you report them on Form 8949 (you might need multiple versions, depending on your circumstances), you'll carry the figures over to Schedule D where you'll calculate the net capital loss or gain. Although you'll pay taxes on gains in the current year, you may need to carry over capital losses to future tax years if you cannot deduct them in the current year.
I've attached resources for both forms for your convenience.
IRS Schedule D, Capital Gains and Losses
Article: www.teachmepersonalfinance.com/irs-schedule-d-instructions/
Video: th-cam.com/video/wpPXe8z40lY/w-d-xo.html
IRS Form 8949, Sales and Dispositions of Capital Assets
Article: www.teachmepersonalfinance.com/irs-form-8949-instructions/
Video: th-cam.com/video/O5P_L9zdXME/w-d-xo.html
@@teachmepersonalfinance2169thanks, also what if I don’t have any gains but a loss am I required to file that? Will I get penalized for not filing a return ?
@@DannyC-je1mq You won't get penalized for not reporting a loss, but you could lose the tax deduction that you could claim with a capital loss (you can deduct up to $3,000 in capital losses against ordinary income each tax year, and carry the rest forward to future years).
I recently received this form from purchasing bitcoin on cash app and nothing is filled out on it and there’s a 34 dollar proceed. Is that the amount I have to pay to the irs or do I just not do anything?
$34 proceeds would be what you received from the sale. So you would need to know how much you paid for the BTC. Once you know that, then you can determine whether or not you need to report capital gains or losses on IRS Form 8949 or Schedule D. If you realized a capital loss, then you can use it to lower your taxable income.
Below are some articles and videos I made about IRS Form 8949 and Schedule D.
IRS Form 8949, Sales and Dispositions of Capital Assets
Article: www.teachmepersonalfinance.com/irs-form-8949-instructions/
Video: th-cam.com/video/O5P_L9zdXME/w-d-xo.html
IRS Schedule D, Capital Gains and Losses
Article: www.teachmepersonalfinance.com/irs-schedule-d-instructions/
Video: th-cam.com/video/wpPXe8z40lY/w-d-xo.html
Thank you for your videos!!! Much appreciation. I have 2 investments. My financial advisor wanted me to switch both to new companies in 2023 so I will have better investments in the long run. So he did a complete rollover for the IRA and then a complete transfer of nonIRA, reinvesting into the new companies. I’ve never done this before, so never knew about 1099B. But my advisor says I would have one, and will be sending it to me. But isn’t it true if he rolled over the IRA and in a sense did a “rollover” of the non IRA ( I took no monies out) , I will not need to pay any taxes on either?
I believe these would be two different transactions, so let's look at each:
IRA: If your financial advisor rolled over your IRA, you should expect a Form 1099-R for the old IRA, marked with a distribution code 'G' in Box 7. Also, the taxable amount should read: 0.00 in Box 2a. More info in these resources:
IRS Form 1099-R Instructions (Distributions from Pensions, Retirement Plans, etc)
Article: www.teachmepersonalfinance.com/irs-form-1099-r-instructions/
Video: th-cam.com/video/xyIt6e33sso/w-d-xo.html
For your new IRA, you should also receive IRS Form 5498, which simply means that money (or assets) were transferred *into* that account. You don't necessarily need to do anything with this form, but you may want to understand it. You can learn more about IRS Form 5498 here:
IRS Form 5498, IRA Contribution Information
Article: www.teachmepersonalfinance.com/irs-form-5498-instructions/
Video: th-cam.com/video/anqlFa4pRF4/w-d-xo.html
Investment account: You might receive a Form 1099-B if there were securities sold as part of that transfer. If your financial advisor did not sell anything, but simply transferred assets from one account to another, then you shouldn't see a Form 1099-B. It appears that 'reinvesting in new companies' might imply that he sold some of your securities to generate that cash, so I wouldn't be surprised if you receive one.
Deep appreciation for your taking time to answer my question 🤗🙏🏽 . So could I possibly owe taxes on this “transfer,” well maybe as you said it was a selling and then a reinvestment? Monies were put in my bank account by the advisor when he did this and the following day they withdrew these funds exactly and did a “transfer” of this total to the new company. Will the 1099B help me to know if I will owe taxes on this??
@@comfortoneanother9430 You would receive IRS Form 1099-B if there were any sales of investments. The form would have the information that you would need to determine if it were a long-term or short-term capital gain, as well as the amount of capital gains.
If there were no sales, then you wouldn't receive a Form 1099-B.
If all of these happened in 2024, you would not receive Form 1099-B until January 2025, at the earliest. What you might consider is to ask for a statement of all transactions that occurred in your old account (as for the final 2 months of statements, as a precaution), and the first month of statements in the new account.
Many times, some investment firms have proprietary funds, that may be sold if a client moves their assets out of the account. This is an arbitrary conditions, simply based on the fact that 'XXX firm doesn't carry YYY firm's funds, so to move the account from YYY to XXX, we'll have to sell YYY.' Even though the IRS doesn't establish THOSE rules, as the taxpayer, you're still liable for the capital gains in a taxable investment account.
Just a HUGE thank you and appreciation for your thorough explanations and help. This all happened in 2023. I’m working on getting the 1099-B. My advisor is getting it for me. Wish he had given me a heads up last year when all this transpired, so I would have know to look or ask for the 1099-B. I certainly don’t like change, and it was a big change to do these transactions, which should help in the long run. At least that’s what I’m told. But if I thought I would have to pay a lot of taxes maybe I would not have allowed this transfer. Or maybe there won’t be that much owed at all. I actually do not make enough money to even have to file taxes. But I file my taxes so I get my refund each year. Guess I just wait to get the 1099-B and go from there. Is there a possibility I don’t owe any taxes on it?
@@comfortoneanother9430 If this happened in 2023, then you should have received your Form 1099-B by now (they're due to taxpayers no later than January 31). If you incurred capital losses that exceeded your capital gains, then you could end up not having to pay taxes on this. There is a possibility that no securities were sold out of that account, and you wouldn't have received a Form 1099-B.
My concern still is about the fact that you don't have a Form 1099-B, a week after your tax return was due. I'm not sure that there exists a good explanation for this (unless you were not supposed to receive one). But either your advisor was negligent in not making sure that you received your Form 1099-B, or he's asleep at the wheel for not being able to tell you that you wouldn't receive a Form 1099-B.
Either way, if I were in your position, I would seriously consider looking to hire a different financial advisor. This is not acceptable.
In this video, I may have mistakenly referred to IRS Form W-7, Application for IRS Individual Taxpayer Identification Number, instead of IRS Form W-9, Request for Taxpayer Identification Number and Certification. To avoid backup withholding (Box 4), file IRS Form W-9 with your broker or barter exchange.
IRS Form W-9, Request for Taxpayer Identification Number and Certification
Article: www.teachmepersonalfinance.com/irs-form-w-9-instructions/
Video: th-cam.com/video/zimvkM8v0w0/w-d-xo.html
HELLO SIR
I HAVE A STOCK TRADE THROUGH CHARLES SCHWAB 1099-B
AND FROMERLY FROM MERRIL LYNCH 1099-B
DO I USE 8949 FOR GINS AND LOSSES AND DO I ENTER THAT LOSS GAIN ON MY 1040?
@@ekop1778 Generally, you may (or may not) need IRS Form 8949. But if you do complete Form 8949, then the results should go to Schedule D. From Schedule D, you would report the net gain or loss on your Form 1040.
According to the Form 8949 instructions, you don't need to file IRS Form 8949 if any of the following apply:
• You received a Form 1099-B (or substitute statement) that shows basis was reported to the IRS and doesn't show any adjustments in box 1f or 1g;
• The Ordinary box in box 2 isn’t checked;
• You don't need to make any adjustments to the basis or type of gain (or loss) reported on Form 1099-B (or substitute statement), or to your gain (or loss); and
• You aren’t electing to defer income due to an investment in a QOF and aren’t terminating deferral from an investment in a QOF.
• You aren't reporting the sale of a collectible
In these cases, you would only need to report directly on Schedule D.
IRS Schedule D, Capital Gains and Losses
Article: www.teachmepersonalfinance.com/irs-schedule-d-instructions/
Video: th-cam.com/video/wpPXe8z40lY/w-d-xo.html
@@teachmepersonalfinance2169 ok sir thanks
ed from conn!!!!