CDs on Sch D??

[Snaggletooth]

Never seen this before.

Got three 1099-Bs from Ameriprise. The security listed was "Ameriprise Certificate."
Client said they were Certificates of Deposit that were cashed out.

Basis was not listed on the 1099Bs nor the printed material that came with them. However, there was a statement that unless the certificate had been owned since 1944-1954, the basis would be the same as the selling price.

I've seen 1099-Bs when bonds were redeemed, because there could actually be gain or loss of unamortized premium or discount.

But not CDs. Anyone else seen this, or can tell me what's going on? Obviously, this is supposed to go on Sch. D with no G/L, but I'm finding this strange...

[joanmcq]

I've only seen 'em from Ameriprise. Started getting a lot of notices on them. At least ya don't have to spend any time looking up basis.

[erchess]

Two Questions

1 In this situation did the CDs pay interest year by year that got reported year by year and if not what did the investor hope to gain by in essence loaning money to Ameriprise?

2. In the case of a normal CD at a normal bank, am I right in understanding that you do not receive the interest until maturity which can be as soon as 30 days or as long as 5 years after deposit? When do you get taxed, all along or at maturity?

[Snaggletooth]

Sorry

I couldn't possibly know the answers to all that.

All I have are three 1099-Bs.

[S T]

Other Brokerage Houses

I have seen several over the years from Simth Barney(citgroup) UBS, etc.

The broker invests in a CD so usually the buy/sell is the same amount, however, I have seen it be different if there was some accrued interest.

Sandy

[Jiggers]

CD's on 1099B's

I see them all the time from all the brokerage houses.

They are required to report all transactions.

[WhiteOleander]

Maybe it's regional. I see CD's on brokerage stmts all the time. I just list them by the bank name. Usually the only problem is determining if the CD was held more than a year. or not. But, since the sale price and basis is the same, it doesn't make any difference. I have never gotten a letter from IRS on this.

[taxmom34]

cd's at banks in this region report the interest each year .

[thomtax]

I have a client that gets these statements from a brokerage house. The interest is reported in 1099INT section. I think this year he had 6 with a $1.00 gain on each of them.

The way that I found out about the first ones was that he told me he got a letter from the IRS about the sales in a previous year not being reported. This concerned me so I asked, "Is this something I left off?" He said "No, you never did see them. I knew I didn't make any money on them so I threw them away when they came in." When I told him about the need to file them to get the basis to the IRS, he said "I know that now."

This is the same one that always wanted to say "It was about, put down so and so, I'd say ti was." I had told him that his abouts, probablys and so on were going to get us all into trouble. He would then either say it's not worth claiming or begrudgingly get the real figures.

LT

[dyne]

I have been seeing this for years.

[erchess]

thomtax

At least when the chips are down your client takes responsibility for his actions. Too many would find a way to blame their preparer.