Ameritrade 1099B

[Larmil]

I have an Ameritrade 1099B with a report of the 'realized gains and losses'. The total proceeds on the report agree with the 1099B. However there are many transactions with zero proceeds involving 10 different securities. All of these transactions have the same sale date - 11/23/2011. This looks strange to me and the client has no clue what is going on.

Is it late in the season or do I have reason to question this?

[thomtax]

Personally, I would be encouraging the client to get in contact with the company to determine what is happening, for his own sake. Or depending upon your relationship with the client, and your inclination, getting his permission for you to contact them. The company will probably not be much help, but I would try. Is it possible that they are "churning" commissions?

LT

[AZ-Tax]

Is it GainsKeeper?

Larmil, does it say "GainsKeeper" on the top right of the first page and AmeriTrade on the top of the left side of the page. If so it should give you the net ST and net LT trades. I enter the total cost and proceeds of all ST trades on one line on Sch D and same goes for LT trades. Then I mail a copy of GainsKeeper along with form 8453.

[Larmil]

Larmil, does it say "GainsKeeper" on the top right of the first page and AmeriTrade on the top of the left side of the page. If so it should give you the net ST and net LT trades. I enter the total cost and proceeds of all ST trades on one line on Sch D and same goes for LT trades. Then I mail a copy of GainsKeeper along with form 8453.

No it is not GainsKeeper.

[FEDUKE404]

Could it be....

....options (expired) ?

Sounds strange...usually it is the basis that is missing.

But what is shown on the Form 1099-B is the important stuff. Often the "realized" statement is only a courtesy copy for the client.

FE

[ChEAr$]

Not strange atall.

Zero proceeds, but with basis showing, usually means the stock went south, i.e. total and unmitigated bankruptcy. Like the one I dealt with this morning, Mirant stock.

You can probably confirm this by a web search for the company which saves bother of trying to contact broker.

[Burke]

Agree. Either worthless stock or expired option probably. Check Google for the stock.

[taxea]

Have client get explanation from investment company.

[ChEAr$]

Have client get explanation from investment company.

It's not worth the time getting client to contact broker when you can get it from Google.

[Larmil]

Not strange atall.

Zero proceeds, but with basis showing, usually means the stock went south, i.e. total and unmitigated bankruptcy. Like the one I dealt with this morning, Mirant stock.

You can probably confirm this by a web search for the company which saves bother of trying to contact broker.

10 different securities all 'went south' on the same day??? "ivy science & tech", "TR Price health science fund", "MFS utilities fund" to name three. I don't buy it any more than I would buy ocean front property in Arizona.

[AZ-Tax]

Do I have beach front property for you

I don't buy it any more than I would buy ocean front property in Arizona.

Sounds like you be willing to pay quite a handsome amt for some of our beach front property. Not a problem, couple 2-3 dump trucks of sand and wala. You didnt mentioned anything about an ocean

Well its a good thing I dont prepare taxes like a read Larmil message about ocean front property in AZ. Would you settle for a man made lake?

[Burke]

10 different securities all 'went south' on the same day??? "ivy science & tech", "TR Price health science fund", "MFS utilities fund" to name three. I don't buy it any more than I would buy ocean front property in Arizona.

They don't go south all on the same day. Usually that is the day the broker enters them into his computer records as deemed worthless. Most often it is the last day of the tax year. HOWEVER, these you mention are not worthless, so you need to find out what is going on. These are mutual funds, not individual stocks.

[joanmcq]

Yes, and you can't do puts & calls on mutual funds (or can you?).

[Gary2]

Are you looking at a complete transaction list, and not just the sales? I've seen statements that list both the purchases along with the sales.