1099B Redemption

[geekgirldany]

I have a client that brought in a 1099B with a transaction type of "redemption". There is no cost listed. When I asked the client she said it was money she took out of a money market account and then put into a Etrade account.

So what does this "redemption" mean? Is the Proceeds and the Cost the same to come out to zero gain?

Thank you for any help
Dany

[Possi]

That's what I did

I took it as a zero gain/loss because she put the money in the money market account after taxes and paid tax on the interest as it was earned (or dividends)...

I'm not saying that's right, I'm saying that is how I always have handled those particular 1099B's.

[jimmcg]

I have a client that brought in a 1099B with a transaction type of "redemption". There is no cost listed. When I asked the client she said it was money she took out of a money market account and then put into a Etrade account.

So what does this "redemption" mean? Is the Proceeds and the Cost the same to come out to zero gain?

Thank you for any help
Dany

As long as trustee maintains one dollar parity (which is the case in most money market funds) then adjusted basis should be equal to amount redemed..........Zero gain.

[geekgirldany]

thank you for posting. I had not ever seen something like this for a money market. I just needed the double check

Thanks again

[Burke]

Somtimes brokerages whose AE's buy CD's for a client show them in the 1099B summary as "redemptions." Drives me crazy, since they are also zero gains and are normally not reported to the IRS.

[dyne]

The last time I researched this several years ago the banks, etc. were not supposed to
report these on a form 1099-B when there was no gain.