Company issued 1099-B, What form do I us to report proceeds? It has sale date but not what each was sold for or do I just report proceeds?
asked 23 Feb '11, 01:51
For the purpose of my answer, I will assume that you have sold shares of stock.
Proceeds reported on Form 1099-B (Proceeds from Broker and Barter Exchange Transactions) are listed on Schedule D (Capital Gains and Losses): http://www.irs.gov/pub/irs-pdf/f1040sd.pdf
NO, you do not simply report the proceeds. A cost basis of zero would result in a gain of the entire amount of the proceeds! This could be costly.
You always want to calculate your gain or loss properly, so accurate information is necessary. If you are unclear on how much you purchased the stock for, you will need to review your records (brokerage statements, trade confirmations, or year-end statements, etc.), as well as consult with your broker or financial advisor.
Please also see IRS Pub 550 (Investment Income and Expenses): http://www.irs.gov/pub/irs-pdf/p550.pdf
This can be complicated at times, so you may want to seek the advice and review of a tax professional before you complete your return.
Best of Luck!