On Apr 5, 9:45*pm, kam...[at]panix.com (Arthur Kamlet) wrote:
- quote -

Yes, and that is my concern. I'm assuming that it's not possible to
report a negative Gross Proceed, so the broker listed it as positive
$1, and neglected to account for the commission I paid.


- quote -


That's what I was leaning towards doing...

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

In article <a6a1d5a4-8986-44db-94cd-e69909a6cf91[at]w40g2000yqd.googlegroups.com> ,
martin lynch <odiegoogle[at]yahoo.com> wrote:
- quote -

Doesn't the 1099-B tell you the Gross Proceeds are being reported?

If so, report the $1 sales price and add the sales commission to the
cost basis of that stock.
--

ArtKamlet at a o l dot c o m Columbus OH K2PZH

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

I posted a message regarding my 1099-B just minutes ago, but noticed I
described the situation incorrectly.

Here is the situation, and my question. (I've changed the dollar
amounts for simplicity).

I sold a stock of total worth $1 last year. My on-line broker charged
me $5 commission. So essentially, my proceeds was negative $4.

Typically, I've noticed that on a 1099-B, the proceeds will be
calculated as the total sale amount, minus commissions.

But for some reason, in this case, the broker said my proceeds (Box 2)
for the sale was positive $1.

If Box 2 as reported by the broker to the IRS does not match the
amount of proceeds I report, does it raise a red flag?

Which should I do?
1) Report my proceeds as ZERO, then add $4 to my cost basis
2) Report my proceeds as $1, then add $5 to my cost basis
3) It doesn't matter. The IRS doesn't check if Box 2 matches my
proceeds, they just care that I calculated the amount of my loss
correctly.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >