Thread: bmneveu's Account Talk

bmneveu, I just got an e-mail from OH saving my account doesn't quality for a 1099 and I won't be getting one...this brokerage is starting to **** me off. So all I get is that 8949 and Schedule D out of maxit which doesn't even have any info in the top section like name, SSN, etc.

Do I need a 1099 for anything? If I understand correctly the 8949 and Schedule D are used to generate a 1099 or something...? All of these forms are confusing me. In online tax programs I don't see a place for 8949 and Schedule D, but I see a 1099-B and 1099-DIV.

Did you also get this e-mail?

Originally Posted by MaStA

bmneveu, I just got an e-mail from OH saving my account doesn't quality for a 1099 and I won't be getting one...this brokerage is starting to **** me off. So all I get is that 8949 and Schedule D out of maxit which doesn't even have any info in the top section like name, SSN, etc.

Do I need a 1099 for anything? If I understand correctly the 8949 and Schedule D are used to generate a 1099 or something...? All of these forms are confusing me. In online tax programs I don't see a place for 8949 and Schedule D, but I see a 1099-B and 1099-DIV.

Did you also get this e-mail?

I haven't received any emails from them, no. And I'm sorry I can't give you much advice cuz I'm a beginner at this stuff too.

Originally Posted by bmneveu

I haven't received any emails from them, no. And I'm sorry I can't give you much advice cuz I'm a beginner at this stuff too.

I guess I received the e-mail in error. I just called them and they stated my account will be getting one and they will be talking with the supervisors about it since I have an IRA and Individual account I think I got the e-mail in reference to my IRA account which doesn't get reported to the IRS. It seems like we should get a 1099-B and it should total all of our trades and make it really simple to input. If you trade options, currently those are not reported on a 1099, but started in 2014 they are supposed to be included on the 1099. I guess right now if you trade options nothing is reported to the IRS for gains/losses on them and it is up to you to be honest and claim them or not.

Once I get the 1099 I will figure everything out, but it seems that currently the 8949 and Schedule D available through Maxit in the platform are for our informational purposes only and not reported to the IRS. You would use these in the case that you trade options since options once again are not included in a 1099.

Once you get your 1099 and input the data into your tax program it should populate the 8949 and Scheduled D, which is then sent to the IRS electronically or hard paper and they again match it to your 1099 they got from your broker.

Originally Posted by ILoveTDs

Once you get your 1099 and input the data into your tax program it should populate the 8949 and Scheduled D, which is then sent to the IRS electronically or hard paper and they again match it to your 1099 they got from your broker.

So is a 1099 a consolidated total of all of your trades or you get a 1099 for each and every trade you made? From what you are saying on how an 8949 can be created from 1099s it would seem you would get a 1099 for each and every trade which would be a ton of 1099s...

Take a look at a blank 8949, the majority of the form is just a big table.

Each row is a individual trade, and has to be complete to fill in Schedule D. I think BT once said it takes him 60+ hours to complete Schedule D.
You'll only get one 1099 from each brokerage account, but it can be ton's of pages. Good luck.

Someone on a recent thread mentioned "wash sales" I talked about this in my thread in early December ILoveTDs Account Talk. My understanding is you only need to worry about a "wash sale" if you sold for a loss and then re-bought within 30 days. If you sold for a gain the IRS wants the tax on the gain. If you sold for a loss and rebought within 30 days they are not going to allow that loss (wash sale) because you bought the stock back at the same price you sold it at and still own the stock (e.g. paper loss), you just adjust the basis in your stock.

Originally Posted by MaStA

I guess right now if you trade options nothing is reported to the IRS for gains/losses on them and it is up to you to be honest and claim them or not.

Just like all the waiters, waitresses and bartenders out there claiming 100% of their cash tips every night, right?

Originally Posted by ILoveTDs

Take a look at a blank 8949, the majority of the form is just a big table.

Each row is a individual trade, and has to be complete to fill in Schedule D. I think BT once said it takes him 60+ hours to complete Schedule D.
You'll only get one 1099 from each brokerage account, but it can be ton's of pages. Good luck.

Someone on a recent thread mentioned "wash sales" I talked about this in my thread in early December ILoveTDs Account Talk. My understanding is you only need to worry about a "wash sale" if you sold for a loss and then re-bought within 30 days. If you sold for a gain the IRS wants the tax on the gain. If you sold for a loss and rebought within 30 days they are not going to allow that loss (wash sale) because you bought the stock back at the same price you sold it at and still own the stock (e.g. paper loss), you just adjust the basis in your stock.

I do have a few wash sales on my 8949 so I'll have to figure out exactly what to do with that...adjust the cost basis for that trade as in subtracting the loss from the cost basis?

The IRS computer now knows every transaction you've made during 2012 - if you get by the initial screen you should be ok. Every transaction will have to be documented on 8949 form and then added into the Schedule D and then inputed onto your 1040 for AGI. Your brokerage people are required by law to send the IRS a 1099 - your totals have to match. The IRS knows every time you took a bathroom break - welcome to big brother. Try not to make an mistakes or you'll have to deal with their computer via snail mail and that is a dredge. I hid a few dollars last year but won't be able to do that this year. The meter goes off everytime I flush - worse than the local water utility. At least you haven't graduated to the 4952 form yet. The IRS likely will not bother with your 8949 unless you are audited - but you need it to protect yourself or pay penalties.

went half in to S at the deadline

still keeping half in G in case im wrong here...

I will be selling XIV for what looks like about +3% in a few minutes. Still 50S/50G.