"Dennis G. Rears" <drears[at]runningpagespam.org.lga.highwinds-media.com> wrote:

- quote -

Yes.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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Most of us have had older people come in with an IRS notice.
"But I don't have enough to have to file!" but the 1099
showed GROSS sale of $20,000. So the stock plus annual
dividend purchases cost $30,000? IRS didn't know that.

They do it with homes, too. Older, single, maybe $5000
total income, but the home sold for $300,000.

Nan, EA in LA

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"Dennis G. Rears" <drears[at]runningpagespam.org.lga> wrote:

- quote -

The stock broker sends a copy of the 1099-B to the IRS for
any sale, so if you don't report it on your 1040 Schedule D
they'll notice the discrepancy and probably audit you.

However, if it's a loss it would have reduced your tax, so I
don't think there's any penalty. You only get penalized if
you owe additional taxes.

--
Barry Margolin, barmar[at]alum.mit.edu
Arlington, MA

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Dennis=A0G.=A0Rears posted:

- quote -

Yes.

- quote -

Yes. The 1099B which will be produced by the broker will be
copied to the IRS. Lacking your report -- on Schedule D --
to show the cost basis and consequent gain (or loss), the
IRS will conclude the income was 100% profit, and you'll
likely receive a letter advising you of your tax deficiency.

So you can report it now, or reply to the IRS letter audit
later. I would recommend against becoming a Pen Pal of the
IRS. <g
Bill

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Yes. A form 1099B will have been issued with the sales
price. Your Schedule D Sales Amount column must total at
least as much as all the 1099B's issued, If you don't
report it the IRS wil assume your basis is Zero and tax you
on the entire sales amount, not just the profit. If the sale
was at a loss you should report it in order to take the loss
and avoid the IRS Zero basis which would produce a gain.
ed

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"Dennis G. Rears" <drears[at]runningpagespam.org.lga.highwinds-media.com> writes:

- quote -

Unless you report the sale on your return, the IRS will
assume you have a *gain* for the full amount of the sales
proceeds. Remember, the IRS knows the sales proceeds
because the broker reported it to them (and you) on 1099-B.

So even if you have a huge loss, the IRS will assume it is a
gain and act accordingly unless you report it on your
return.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

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"Dennis G. Rears" <drears[at]runningpagespam.org.lga.highwinds-media.com> wrote

- quote -

I`f you sell stock, the sale is put on Schedule D. Both profits and losses
are to be reported on that form. If losses exceed gains, that loss may be
deducted from other income up to $3,000 a year.

Wayne Brasch

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Forget about the economic issues. Is a person subject to US
tax laws required to report the sale of US stcok securities?
Does this include a sale this nets a loss?

dennis

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