This discusssion reminds me of a current proporsal by IRS no
less which would require brokers to track cost bases of
securities for their clients. Just saw this recently and
can't remember whether it's just a trial balloon, or a
proposal before congress.

Of course it would not be effective for a couple of years
from now.

ChEAr$,
Harlan Lunsford, EA n LA
Tue 21 Mar 2005 [at] hh

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"Steve Pope" <spope33[at]speedymail.org> wrote:
- quote -

Thanks for all the responses. What I failed to mention was
that this 1099-B checks off the little block that says these
transactions are being reported as net, when the two
transactions in question are indeed being reported as gross.
The rest of the 1099-B sales are correctly reporting net.

Maybe the best thing to do is just add the commission cost
onto the basis of the two gross sales and if I'm ever
audited just show them the sales confirmation which would
prove that they were giving me gross on those two.

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Bob Schmidt <Smitty[at]telecom.SPAMNET> wrote:

- quote -

I would.

- quote -

I wouldn't because that is not accurate, even if the final
numbers come out right.

Steve

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Bob Schmidt <Smitty[at]telecom.SPAMNET> wrote:

- quote -

I would.

- quote -

I wouldn't because that is not accurate, even if the final
numbers come out right.

Steve

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Bob,

Report the sales as per 1099-B and add commission to cost
basis. Do not send note to IRS as everything will tie-out.

Jim Hayden EA - Michigan

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Bob Schmidt wrote:

- quote -

You should just increase your basis. The IRS docs
specifically address this case.

-Mark Bole

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Bob Schmidt wrote:

- quote -

Yes, simply report the correct amounts for cost (including
the pro rated commissions). You see, it's only the gross
amounts that get reported to IRS, so then.... no problem.

ChEAr$,
Harlan Lunsford, EA n LA

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"Bob Schmidt" <Smitty[at]telecom.SPAMNET> wrote:

- quote -

There's nothing wrong with your 1099-B. The broker has the
option of reporting gross or net proceeds. Since yours
reported gross proceeds, add the sales commissions to your
cost basis. This will generate the appropriate amount of
taxable gain for each transaction.

Ira Smilovitz

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No need to get a new 1099-B. Just add the transaction costs
to your basis. You don't need to do anything special or even
tell the IRS what you are doing. They have no way of knowing
your basis, and if they were ever to audit this return, you
would simple explain your basis was the cost of what you
paid for the stock plus the transaction costs of selling.

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Bob Schmidt wrote:

- quote -

If you look at page 6 of the Schedule D instructions, it
tells you that your broker may report gross or net proceeds.
If gross is reported, you add the commissions to your cost
basis.

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Bob Schmidt wrote:

- quote -

Bob, the 1099B is correct. You accually did receive the
gross proceeds then the broker subtracted his commission
from that and sent you a check for the difference. You add
the commissions, both when buying and selling, to your basis
(what you paid for the stock when you bought it). This will
come out to be what you actually received for the stock
(minus the commissions).

Missy Doyle

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Yes, increase your cost on Schedule D. No don't say
anything, just note it in your records. ed

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Yes, increase your cost on Schedule D. No don't say
anything, just note it in your records. ed

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Smitty[at]telecom.SPAMNET (Bob) posted:

- quote -

Just add the commission to your cost basis. That's a normal
action.

- quote -

No. You're simply accurately reporting your total cost
basis for the stock sale. No written explanation is
required, nor should it be tendered.

Bill

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"Bob Schmidt" <Smitty[at]telecom.SPAMNET> writes:

- quote -

Brokers aren't required to show net proceeds on 1099-B.
They are allowed to show gross proceeds if they so choose.

- quote -

The latter. That's exactly what the IRS says you're supposed
to do when the broker reports gross proceeds. See IRS Pub 550.

- quote -

No.

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

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"Bob Schmidt" <Smitty[at]telecom.SPAMNET> wrote:

- quote -

The latter.

- quote -

No statement. You're doing exactly what the Schedule D
instructions tell you to do.

--
Phil Marti
Clarksburg, MD

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Bob Schmidt wrote:

- quote -

Was the "net" proceeds box checked on the 1099B? If not, the
form is not in error. Just add the commissions to the cost
basis.

If the box was checked, then the form is in error. Request a
corrected form from the issuer.

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Minor dilemma.

My broker sent me an inaccurate 1099-B. For a couple of the
stock sale proceeds it is showing gross proceeds, not gross
proceeds minus commissions which is what I actually
received. The rest of the account is accurate and reflect
net proceeds for each stock sale.

Should I go through the hassle of getting an accurate 1099-B
to correct these two stocks or should I just simply increase
my cost for each transaction by the amount of the
commission? If I do the latter, should I send some sort of
note to the IRS regarding same with my return indicating the
1099 error? Thanks for any tips.

Bob

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