1099-B (Total Gross Proceeds)

[Sherill]

My brain is mush....93 yr old client has investments. Client rec'd, along with 1099-Int and 1099-Div, a 1099-B 2006 Tax Reporting Statement. This 1099-B has a total Gross Proceeds of $24,800(client's investments). He did not withdraw these proceeds.
Do I still report this on a Sch D(he will have to pay IRS $2,000+ )) Help me, pleeeze.
Thanx

[jimmcg]

Sounds like he may have exchanged out of some mutual funds to other mutual funds within the same fund family. An exchange out of any mutul fund is generally a taxable event even though the funds remained within the fund family and were not "withdrawn." If this were the case would go on S-D.

[ChEAr$]

All is not lost

My brain is mush....93 yr old client has investments. Client rec'd, along with 1099-Int and 1099-Div, a 1099-B 2006 Tax Reporting Statement. This 1099-B has a total Gross Proceeds of $24,800(client's investments). He did not withdraw these proceeds.
Do I still report this on a Sch D(he will have to pay IRS $2,000+ )) Help me, pleeeze.
Thanx

Anytime you have a 1099B the gross proceeds are reported on schedule d.
Howver, don't forget there is a basis for the investments. If securities, how much
did client pay for the stocks or bonds?
Most brokerage 1099's these days already have the cost figures on them. Look further.
Have client get intouch with brokerage company for basis information.

[Snaggletooth]

Redeemed Bonds

Cheers, redeeming bonds or municipals can launch a 1099-B as well.

Many of my customers tell me "I didn't sell a thing!!" but when we got to the bottom of the situation, a bond had been redeemed or expired. This is often not something that the taxpayer does, but most often something that occurs at the expiration of a pre-determined date during the taxable year.

[jimmcg]

When you are computing or checking the adjusted basis for the mutual funds sold don't forget that any dividends reinvested over the years are added to the original cost of the funds sold. Most larger fund companies will compute the "average cost" basis for you and supply you with this info. Remember you do have other options besides "average cost," see if they are allowed and beneficial to your client in this particular situation.

[Sherill]

Whew!! Thanx

I needed your help...I just did NOT read far enuf into the literature to find the cost basis. Now I find that he only has a $2,000 gain. Thanx...Thank you...again....: o )