My question is: will a 1099b be reported to the irs, if it shows a net loss for all futures transactions for the year? will a 1099b be created by the company, if the only entry will be total data and platform costs: e.g, if you pay a company like bloomberg for the platform monthly, and the end of the year, your total costs are $500, will that be reported to the irs, via a 1099b?
Ask a tax professional (CPA that knows how to handle 1099bs) in your area. People, don't try to skirt the IRS issue... In order to assume proper tax liability, you're gonna' have to spend the few hundred bux it will take for a CPA to do your taxes. Pay for the peace of mind...Pay for the accuracy. (An audit is a very bad thing, it hurts.) A good CPA knows all the ins-and-outs of tax law that you cannot fathom. Do not forget, there is not just federal-level, but also state-level concerns. That is what they do. They know things.
And then there are CPAs who would have no clue with a trader tax return. There is no way I would let anyone else do my taxes at this point.
you're right, most cpa's have no clue about how to handle a trader's tax return. So here goes again, just anyone with an answer would be great: if a 1099b shows a net loss for the year, will it still be reported to the irs? If all I did was pay platform fees for the year, would the total of all my fees be reported to the irs on a 1099b? btw, I am not trying to skirt taxes, if you notice, if I am referring to a net loss, and an expense (platform fees).
Of course any loss is going to generate a 1099b, why wouldn't it? If you have a loss you're going to either net that against gains in other accounts or claim the loss on you tax return, right? Why wouldn't the IRS want to check that the loss you claimed matched what the broker reported in exactly the same way they want to be able to check if the gain you claimed matched the broker?
Then find one that does understand trader tax status. I live in a podunk town and was able to find one. Surely there is one around the OP's area?
Have you ever gotten a 1099b before? A.) Have you noticed that on a 1099b with a net profit, it says "this is being reported to the IRS"? B.) Have you ever noticed that on a 1099b with a net loss, it says "this is not being reported to the IRS"? I didn't think you did. Rule of inference...The IRS knows all.
i need some input on this: will a 1099b be created by the company, if the only entry will be total data and platform costs: e.g, if you pay a company like bloomberg for the platform monthly, and the end of the year, your total costs are $500, will that be reported to the irs, via a 1099b?
When are platform and data costs ever reported on a 1099b? Have you even looked at the form, that would be a good place to start. Hint, there's no place to report anything like that at all, regardless of circumstance.