FORM 8949 - Source Documents?

[duanecpa]

Does anyone have any experience with this new form for those people who trade on their own and do not receive a Form 1099-B?

Do we go back to the 'old' way of taking the information the TP has and placing directly on the Schedule D?

Thank you.

[Lion]

No

No. You do not enter any trades directly on Schedule D. Now Schedule D is only a summary form of all the Forms 8949 in that return. Enter all transactions on one of the Forms 8949 in the return. For the type you mention that no Form 1099-B exists, then you enter on Form 8949 Box C long term and Form 8949 Box C short term.

[Jiggers]

Does anyone have any experience with this new form for those people who trade on their own and do not receive a Form 1099-B?

Do we go back to the 'old' way of taking the information the TP has and placing directly on the Schedule D?

Thank you.

No. You still use the 8949. Mark Box (C).

[Burke]

Does anyone have any experience with this new form for those people who trade on their own and do not receive a Form 1099-B?
Do we go back to the 'old' way of taking the information the TP has and placing directly on the Schedule D?Thank you.

You say "trading on his own." If he is using one of the online trading entities such as ETrade, Ameritrade, Scottrade, Chas Schwab and the like, the 1099Bs are probably also on line. All of these companies issue them. He can probably download. As well as the 1099INT/DIVs, if any. If he isn't using any one of these, who is he using?

[oceanlovin'ea]

software puts it on form

I just had a client with schedule D transactions. My input screen is the same, but it shows up on the 8949 and then to the schedule D.

I don't think my software will let you put such transactions directly on the D.

Linda, EA

[Uncle Sam]

Form 8949

I've done a few 1040s by now.
Not only do we have the hassle of segregating further the details on 8949 regarding the
sale/cost basis information - but the IRS now expects you to examine each and every
transaction for whether or not cost basis is disclosed on each transaction.

What do you do when there's NO 1099B to work with?

I certainly hope that the brains (?) at Congress that devised this new plan - will
shout with glee when 2 years from now millions of wasted resources will be spent
on answering discrepancy CP-2000 notices for mismatch of information.

I can hear the shout already from DC - I live in NY.

[taxxcpa]

What do you do when there's NO 1099B to work with?

.

There is a category for no-1099B e.g. sale of real estate.
If the broker issued a 1099B and the client doesn't have it, you would have to get the client to ask the broker for another copy.

My broker is scheduled to issue 1099B's Feb 15. I'm curious as to what they will look like.

[Uncle Sam]

Form 8949

Sale of real estate is 1099-S.

Go to www.irs.gov and search for 1099-B - you'll see what it looks like.

[taxea]

Does anyone have any experience with this new form for those people who trade on their own and do not receive a Form 1099-B?

Do we go back to the 'old' way of taking the information the TP has and placing directly on the Schedule D?

Thank you.

Isn't it on the final statement for the year?

[duanecpa]

Form 8949 - Source Documents?

The brokerage firm got back to me with additional explanation regarding the 1099B when related to trading foreign exchange (FOREX). They stated,

"The NFA (National Futures Association) is the regulatory party that oversees retail FOREX in the United States. At this time, we are not required to provide clients with a 1099B."


This is the reply I received from the TP.

Any comments?

[taxxcpa]

Sale of real estate

Sale of real estate is 1099-S.

Go to www.irs.gov and search for 1099-B - you'll see what it looks like.

Only if a title company issues a 1099-S. I've never sold real estate through a title company.
I give the buyer a Warranty Deed, finance the sale myself and do not get a 1099-S from the buyer.

I don't think title companies always issue 1099-S forms unless the sale is over $ 500,000 MFJ or $ 250,000 for a single person.

Real estate is only one example. There could be sales of personal property or intangible assets with no 1099-B involved.

[Burke]

The brokerage firm got back to me with additional explanation regarding the 1099B when related to trading foreign exchange (FOREX). They stated,

"The NFA (National Futures Association) is the regulatory party that oversees retail FOREX in the United States. At this time, we are not required to provide clients with a 1099B."
This is the reply I received from the TP.Any comments?

Sounds like the same exception for options trading (futures). The brokerages don't have to provide those yet either, even in the US. So you just have to use TP records of purchase, sales, and gain/loss. Since the IRS doesn't get this info, there will be no matching in their system. Only in the case of audit would the TP have to produce documentation. Code proper box on 8949. Then it flows to Sche D.

[Gary2]

Only if a title company issues a 1099-S. I've never sold real estate through a title company.
I give the buyer a Warranty Deed, finance the sale myself and do not get a 1099-S from the buyer.

I don't think title companies always issue 1099-S forms unless the sale is over $ 500,000 MFJ or $ 250,000 for a single person.

Real estate is only one example. There could be sales of personal property or intangible assets with no 1099-B involved.

Around here, it's a closing attorney, not a title company. At the last closing I attended, the attorney asked the sellers to sign a document indicating the tax status of the transaction, which in turn controlled the issuance of the 1099-S. It's more complicated than the dollar amount of the sale, since the sale of a second home doesn't qualify for the exclusion.

[ttbtaxes]

Around here, it's a closing attorney, not a title company. At the last closing I attended, the attorney asked the sellers to sign a document indicating the tax status of the transaction, which in turn controlled the issuance of the 1099-S. It's more complicated than the dollar amount of the sale, since the sale of a second home doesn't qualify for the exclusion.

That's how it is around here as well. At the closing, the attorney requires a statement/document be signed attesting to whether the house sold was his/her/their principal residence. If it was, no 1099 is issued. If that statement is not signed a 1099 is issued regardless of the price.