1099-B Brokers Report Proceeds but NOT Cost Basis?!?!?!

Discussion in 'Retail Brokers' started by jackpearson, Mar 13, 2012.

  1. My bottom line question, I didn't phrase it well in my initial post, is for the items in column B of the new 8949 form, should the trade proceeds show on the 1099-B and NOT the cost amount?
     
    #11     Mar 14, 2012
  2. Yes, Form 8949, column B should be used to report transactions where the trade proceeds is shown on the Form 1099-B and cost basis (purchase price) was not reported by the brokerage firm to the IRS.

    Column B of Form 8949 applies to “uncovered positions” (purchased prior to 2011), where column A of Form 8949 applies to “covered positions” (purchased in 2011).

    NOTE that some brokerage firms are reporting the cost basis for some positions that should be “uncovered” positions, along with “covered” positions all on the same Form 1099-B (combined). This is some of the concerns with 1099s that the brokerage firms are issuing.
     
    #12     Mar 14, 2012

  3. So therefore, every trade on Column B of the 8949, will translate onto the 1099-B with their Proceeds being displayed but their cost as 0. Is that correct?
     
    #13     Mar 14, 2012
  4. If the broker did not provide the cost basis, but did report on the Form 1099-B the proceeds of the transaction, then that overall transactions is report on Form 8949, column B.

    Report the process, which should agree to the Form 1099-B proceeds. Then report your cost basis (purchase price) for this "uncovered" transactions.
     
    #14     Mar 14, 2012
  5. hahaha, damn skippy. I'm in the same boat. I'm going to use this even after they start reporting the cost basis stuff just in case they make an error. It's no skin off their nose if they mess up, after all.
     
    #15     Mar 14, 2012