1099 Year-End Summary

[peggysioux]

Taxpayer has 1099 year-end tax summary showing a realized loss but that same loss is not reflected on the 1099-B. Why would the sale of this investment not be required to be reflected in the 1099-B? It is a partial share of an investment. Just trying to understand the reporting.

[ATSMAN]

Taxpayer has 1099 year-end tax summary showing a realized loss but that same loss is not reflected on the 1099-B. Why would the sale of this investment not be required to be reflected in the 1099-B? It is a partial share of an investment. Just trying to understand the reporting.

Could it be wash sale?

[TAXNJ]

Supplemental

Does client have the Supplemental details that are usually with year end report?

If not, have client ask broker (who got paid) for the explanation otherwise you maybe guessing for a long time.

[DonPriebe]

Taxpayer has 1099 year-end tax summary showing a realized loss but that same loss is not reflected on the 1099-B. Why would the sale of this investment not be required to be reflected in the 1099-B? It is a partial share of an investment. Just trying to understand the reporting.

In general, a basis and gain/loss loss will only be reported on a 1099-B for a covered transaction (i.e. code A or D). The 1099-B for an uncovered transaction (code B or E) may have a basis and gain/loss printed on the client copy, but that information is not on the copy of the 1099-B that is furnished to the IRS. A partial sale of an investment may be a mix of covered and uncovered transactions.

The year-end client transaction summary usually contains all transaction for which the broker has knowledge of the basis, covered or not. Transaction with a truly unknown basis may be included with an assumed basis of -zero-.

[Burke]

The only time I ever see something like that (on a year-end statement, but not on a 1099-B) is for options. Otherwise, everything should be on the 1099-B, covered or non-covered, or no basis known.

[Lion]

I have seen Cash in Lieu of a partial share on year-end reports but not on 1099-Bs from time to time. It's usually a pretty small amount, so I always add it to the return. I've also seen bond redemptions at no gain/loss left off 1099-Bs, but not sure if the brokerages are allowed to do that any longer under their newish reporting regulations as I haven't seen that in a long time. I always insist upon the year-end report to look for discrepancies, but tell my clients I'm looking for fees they can deduct, etc., which is also true.