Wacky 1099B's

[Burke]

Info on Realized Gain/Loss Statement from major national brokerage:

Total Sales Proceeds = $25,148.50
Total Cost Basis = $17,457.72
Total Loss = $ 7,375.69

Hello?

[Jesse]

Perhaps

Adjusted for wash sales?

[RitaB]

Wow

Info on Realized Gain/Loss Statement from major national brokerage:

Total Sales Proceeds = $25,148.50
Total Cost Basis = $17,457.72
Total Loss = $ 7,375.69

Hello?

OK, that's funny. Sorry, I am laughing with you, not at you.

And, your client PAID for that math, too. Broker makes more than I do.

Oh. Well, NOW I'm crying...

[outwest]

Commissions?

Is there a commission column?

[New York Enrolled Agent]

Info on Realized Gain/Loss Statement from major national brokerage:

Total Sales Proceeds = $25,148.50
Total Cost Basis = $17,457.72
Total Loss = $ 7,375.69

Hello?

Happens all the time. Often find a Cash-in-Lieu(s) on the list or a N/A when a cost basis is missing. I'm more surprised you've never seen it before.

[Burke]

Oh, I find missing cost basis all the time and have to refigure. I just have never seen a recap showing a loss when the cost basis they actually have is less than the gross proceeds. And how??? did they figure that loss? You got me. I'll take the info and do my own recap, thank you.

[DaveO]

Was your client trading options? If so, you could be looking for expired options.

[taxea]

Did your client give you the final statement for the year or just pull out what he/she thought you would need?

[Burke]

This is getting funny.
No wash sales.
No commission column.
No options.
Used actual Realized Gain/Loss Detail from the brokerage.

I am not sure my OP was actually understood by everyone. When you have MORE sales proceeds than cost basis, there is normally a gain. So how did they calculate a loss? They were using zero cost basis for many of the trades. Maybe they looked on the ceiling, too. I've gotta try that. ( And the loss figure they listed wasn't even the difference between the two.)

[S T]

If "zero"

Could it be that if the realized gain/loss report shows "zero" cost, the client changed from one brokerage house to another, and/or broker and did not provide the Original Cost Basis to reflect on the year end report?

Sandy

[powerage]

I hate 1099-B's. I report what is shown. If one of the 20 pages shows the sales price and the cost added up with a gain or loss, that is what goes on the return.

[S T]

I would have thought that

Except in 2008, I discovered that what the 1099B report showed, and what actually happened were two different amounts.

I ended up with transactions amounting to a total of 1100 (items) of WASH SALES - (stocks sold in early Decemaber and repurchased in late December 2008) which now are carried over to 2009 and get to deal with it for Jan-Feb 09 transactions.

The client had hit the panic button when the market and economy was so bad in early Dec 2008, instructed Broker to sell all, and then decided or was convinced to reinvest the $$. Broker wasn't smart enough to just place all of the funds in a holding account for another 7 - 10 days, and the "Wash Sale Rules" would have not have been an issue.

I couldn't charge enough, and had really hoped the client would not return for 2009, but noooo! guess what I received in the mail this last week.

EXTENSION for sure while I sort through the continuing mess!

Sad part is the client didn't even know what a "Wash Sale" was, and the broker was "stupid" and should be fired, to place the client in this mess!

Sandy

[RitaB]

Sarcasm Font

This is getting funny.
No wash sales.
No commission column.
No options.
Used actual Realized Gain/Loss Detail from the brokerage.

I am not sure my OP was actually understood by everyone.

I feel ya, dog. There is a real need for a sarcasm font.

[outwest]

Ya got me..

total numbers guy, skim the headings, run the numbers, the loss label didn't even register.

Rub the eyes, take a deep breath, think....

[Burke]

Could it be that if the realized gain/loss report shows "zero" cost, the client changed from one brokerage house to another, and/or broker and did not provide the Original Cost Basis to reflect on the year end report?
Sandy

That is what makes this so interesting. The client has been with the same broker since 1996. And he has been with the same company all that time. Now it has been bought out twice by national firms, but he still should have all the info. After tax season, I am going to chat with him. I know why there is so much zero cost basis, however. TP sold her entire portfolio when moving to a nursing home. 95% of portfolio consisted of the Baby Bells and all their spin-offs. Gross proceeds are right, cost basis is probably right if you look at each trade individually, but I need to check. TP has a gain, not a loss, which if you use the total figures I mentioned in my first OP, is actually the case. .