"ratmommy" <kimbercv[at]hotmail.com> wrote:

- quote -

You just fill in Schedule D to report the loss. You didn't
get any income -- when you sell securities, you're just
getting back some of the money you spent to buy them in the
first place.

--
Barry Margolin, barmar[at]alum.mit.edu
Arlington, MA
*** PLEASE don't copy me on replies, I'll read them in the group ***

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"ratmommy" <kimbercv[at]hotmail.com> wrote:

- quote -


Read the instructions for schedule D

--
This written advice was not intended or written to be used,
and it cannot be used by any taxpayer, for the purpose of
avoiding penalties that may be imposed on the taxpayer.

(The foregoing legend has been affixed pursuant to U.S.
Treasury Regulations governing tax practice.)

<<< Benjamin Yazersky CPA [NJ & NY] > > ---> real address on hobokenx or hobokeni <---

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"ratmommy" <kimbercv[at]hotmail.com> writes:

- quote -

No. The sales amount and his basis go on Sched D. Any
resulting loss (subject to the $3000 loss limit) will come
onto 1040 on the capital gain/loss. See the guide to
capital gains and losses at www.fairmark.com

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

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ratmommy wrote:

- quote -

What you need for your Schedule D is your COST BASIS,
Purchase Date (use "various" if multiple purchases or
reinvested dividends), SALE PROCEEDS, and Sale Date. The
difference between your cost basis and sale proceeds is your
gain or loss.

If the account contained reinvested dividends and capital
gain distributions, you may have to allocate your cost basis
between SHORT TERM (one year or less) and LONG TERM (more
than one year). Allocate the sales proceeds in the same
ratio.

- quote -

That is your Sales Proceeds (reported on a 1099-B form), and
will be reported on Schedule D. Since he apparently received
back LESS than his cost basis for the fund shares, there is
no income.

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"ratmommy" <kimbercv[at]hotmail.com> wrote:

- quote -

Right.

- quote -

That's part of the Schedule D entries.

--
Phil Marti
Clarksburg, MD

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My husband purchased shares in a mutual fund 3 years ago. It
has actually done nothing but lose money ever since. He
redeemed his shares in 2005 for a loss from what he
originally paid. I understand (I think) that I am to figure
out the basis and loss and report it on Schedule D as a
long-term capital loss.

My question is do I also report the money he was paid when
he redeemed his shares as income somewhere on Form 1040? Or
is it just a loss, end of story?

Sorry if it's a stupid question. I just don't want to get
busted for not reporting something. I have a home-based
business so I already feel like I have a target on my back
for an audit and I'm starting to get a little paranoid.

Thanks!

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