joeu2004[at]hotmail.com writes:

- quote -

Always report whatever the 1099-B reports in the proceeds
column of Sched D. If the 1099-B reports net proceeds,
you're done. If the 1099-B reports gross proceeds, you
add the sell-side sales commission and fees to your basis.
See IRS Pub 550.

- quote -

You should always do that, anyways.

- quote -

No. Report gross and add fees to basis.

- quote -

You could do that, too.

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

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

I received cash-in-lieu-of for a sale of fractional shares
from a qualified ESOP. The 1099-B shows the gross proceeds
from the sale. A statement from the investor services shows
the actual amount received was the gross proceeds less
"fees".

Since the amount we're talking about is very small (under
$25), I intend to report the 1099-B amount on Sched D. I
assume that will avoid any IRS questions.

But for the future:

1. Am I correct that the Sched D amount for proceeds should
be the gross proceeds less fees ("the amount charged for
the sale of shares", according to the statement)?

2. If I don't care about the difference, am I correct that
it is safest to report the 1099-B amount on Sched D?

3. If I did care about the difference:
a. Would I simply report gross less fees on Sched D?

b. Or would it be prudent to request a new 1099-B
(correction) from the investor service? That is,
should I __only__ report an amount on Sched D for
which I have a corroborating 1099-B?

It seems to me that in the past, when I did #3a without a
corroborating 1099, I had to go a couple rounds with the IRS
before the matter was resolved to my satisfaction. That is,
the IRS sent a Notice of Assessment, I sent an explanation,
and we might have repeated the dance steps until the IRS
capitulated. (I was right in that case.) I prefer to avoid
such hassles.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >