Broker Statements

[FT TAX]

What is the general practice when it comes to a taxpayer who had capital gain/loss transactions for schedule D. If the taxpayer provides you with a excel schedule with the cost basis and sales amount is that fine or do you require broker statments to see the cost basis and the sales price?

[Unregistered]

The burden is on the taxpayer,

but I would like to have the statements if possible.

JoshInNC

[sea-tax]

I have a couple clients who track there own basis and have used there info in a pinch but I ususally will try to get the broker statements if possible.

I might add one more reason that I love being my clients broker if possible it makes tax time so much more easy.

[Taxman]

Stmts

I try and get the broker stmts when possible. That way you can make sure the taxpayer is including the broker fees on the trade in the basis and sales price as well.

[Jiggers]

Broker Statements

I won't do a tax return without the 1099B, 1099DIV, or 1099INT.

Too many times the clients use the wrong figures. I will not use the annual statement put out by the brokerage houses either.

The brokerage houses sometimes attach a schedule showing their original cost of the fund/stock sold. You have to get the client to verify these amounts. The original cost may be wrong, due to death of one of the taxpayers, for instance, and there is a stepped up basis.

[DaveO]

I would love to have more clients who understand what "basis" is and why it matters. Most Excell© spreadsheets I get require a half hour of editing to get rid of the circular references and hard totals.

[Unregistered]

need the 1099-B

Basis is up to them, but if they get a notice because of a matching error, it makes me look bad. Always insist on the 1099-B to tie out with what is reported to IRS from the brokerage house.

[Joe Btfsplk]

Broker Statements

You definitely need the form 1099B from the broker to make sure that the sales reported on the tax return agrees with the 1099Bs.
Broker statements may not be available for the cost if the securities were purchased several years ago, of in there were reinvested dividends or there have been stock splits or spin-offs or acquisitions. You have to just do the best you can in coming up with a cost and if the client has an excel worksheet showing his cost, then you probably are lucky that you don't have to dig further.