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Author: randSaver One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121585  
Subject: my broker's 1099 form had a strange suprise Date: 3/17/2012 4:31 PM
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I just got my Zecco 1099 form for tax year 2011. The account is a taxable one. I was expecting to see some capital gains listed, because during 2011 I sold a mutual fund (that I held since 1999) and a stock (held since 2008) both at a gain. Zecco does not know my annual income, so they are not going to know about my capital gains rates/exemptions. I am certainly wondering why they have listed no capital gains at all. (I have just sent them a message about this)

If anyone knows what's going on here, I'd greatly appreciate the help! Thanks,
randSaver
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Author: TMFPMarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 115533 of 121585
Subject: Re: my broker's 1099 form had a strange suprise Date: 3/17/2012 4:44 PM
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I just got my Zecco 1099 form for tax year 2011. The account is a taxable one. I was expecting to see some capital gains listed, because during 2011 I sold a mutual fund (that I held since 1999) and a stock (held since 2008) both at a gain. Zecco does not know my annual income, so they are not going to know about my capital gains rates/exemptions. I am certainly wondering why they have listed no capital gains at all.

I have to assume that you've never sold anything before that was reported on a 1099-B. Before 2011 the 1099-B never said anything about basis or gain/loss. That was up to you.

Starting in 2011 brokers are required to report basis and gain/loss in an extremely limited number of cases. It appears that neither of your sales would be those which require same. Thus, it's still up to you to come up with the basis and calculate the gain/loss.

These will be Code B on the reporting form.

Phil
Rule Your Retirement Home Fool

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Author: CABob Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 115534 of 121585
Subject: Re: my broker's 1099 form had a strange suprise Date: 3/17/2012 4:46 PM
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What do you mean that they did not show a capital gain?
Did they show sales of the stock and fund?
Did they show the cash you received (or was put into your account) from the sales?
That is all they are required to provide. These figures get entered on your tax return and you add the purchase information and the difference will be the capital gain (or loss).

Bob

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Author: randSaver One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 115539 of 121585
Subject: Re: my broker's 1099 form had a strange suprise Date: 3/18/2012 5:27 PM
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The only experience I've had with capital gains at all has been in previous years where a mutual fund I was holding on to would pay some capital gains to me on some years (and I assumed it was because of the mutual fund managers deciding to sell off some stock shares of a company or companies contained in the mutual fund). The capital gain would always be listed on the 1099, a few lines below where they list the "ordinary dividends". But on the 2011 form the "capital gains" line is just blank with no figures. I just assumed that a gain from any sale I make on my own would also be listed on that same line of the 1099. But perhaps I've assumed in error?

The forms made available to me from Zecco this year are the 1099 D and 1099 G. They have not made a 1099 B available for me. Does this mean I don't qualify for a B form?

Yes, in a separate area of the PDF file (from the brokers site) the brokerage does list all stock sales I made in 2011 and they list the cash amounts from the sales. But I was confused about why the gains from those sales were not listed on the "capital gains" line of the Zecco 1099. This is a different kind of gain than what I've seen in the past?

Thanks a lot for the help on this.

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Author: irasmilo Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 115540 of 121585
Subject: Re: my broker's 1099 form had a strange suprise Date: 3/18/2012 5:34 PM
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The only experience I've had with capital gains at all has been in previous years where a mutual fund I was holding on to would pay some capital gains to me on some years (and I assumed it was because of the mutual fund managers deciding to sell off some stock shares of a company or companies contained in the mutual fund). The capital gain would always be listed on the 1099, a few lines below where they list the "ordinary dividends". But on the 2011 form the "capital gains" line is just blank with no figures. I just assumed that a gain from any sale I make on my own would also be listed on that same line of the 1099. But perhaps I've assumed in error?

The forms made available to me from Zecco this year are the 1099 D and 1099 G. They have not made a 1099 B available for me. Does this mean I don't qualify for a B form?

Yes, in a separate area of the PDF file (from the brokers site) the brokerage does list all stock sales I made in 2011 and they list the cash amounts from the sales. But I was confused about why the gains from those sales were not listed on the "capital gains" line of the Zecco 1099. This is a different kind of gain than what I've seen in the past?


The 1099-DIV lists capital gains from the sales the mutual fund manager made during the year, but nothing related to any sales you make as a shareholder. Those sales are reported on 1099-B. Before 2011, the fund (or your broker) only had to report the amount of the sale. It was up to the taxpayer to keep accurate records of cost basis so as to calculate what the capital gain (or loss) was. Starting in 2011 and phasing in over the next few years, brokers will be required to track cost basis and report the capital gain associated with any sale. These two types of gains (those from manager sales of securities within the fund and those from shareholder sales of mutual fund shares) will continue to be reported separately on Forms 1099-DIV and 1099-B, respectively.

Ira

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Author: hk2 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 115541 of 121585
Subject: Re: my broker's 1099 form had a strange suprise Date: 3/18/2012 6:06 PM
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They have not made a 1099 B available for me. Does this mean I don't qualify for a B form?



They may not be ready to send you a 1099-B.

My broker's 1099-B wasn't available until 7 March and they plan on making 1099-DIV and 1099-INT available this week. The new IRS reporting rules seemed to have jammed up many brokers.


Jim

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Author: TMFPMarti Big funky green star, 20000 posts Home Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 115543 of 121585
Subject: Re: my broker's 1099 form had a strange suprise Date: 3/18/2012 6:21 PM
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The forms made available to me from Zecco this year are the 1099 D and 1099 G. They have not made a 1099 B available for me. Does this mean I don't qualify for a B form?

I've never heard of a 1099-D, and neither has the IRS website. I've also never heard of a brokerage issuing a 1099-G, which is used by states to report income tax refunds and unemployment payments.

Yes, in a separate area of the PDF file (from the brokers site) the brokerage does list all stock sales I made in 2011 and they list the cash amounts from the sales. But I was confused about why the gains from those sales were not listed on the "capital gains" line of the Zecco 1099. This is a different kind of gain than what I've seen in the past?

As Ira mentioned, they may not have the 1099-B's ready yet. There should be some sort of general information on their website about timing. I think Ira cleared up for you why you're not seeing these capital gains where you're used to seeing capital gains, but holler if that's not clear.

Now let's explore what you might expect to see when you do get a 1099-B from Zecco. In addition to the date and proceeds of sale, the following information is needed to properly calculate and report the gain/loss:

1. Date(s) purchased
2. Purchase price including commissions.

Does Zecco have that information? If they do, they may or may not report it on the 1099-B. If they don't have it, you can be sure it won't be there, and you'll have to provide that information yourself.

Phil
Rule Your Retirement Home Fool

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Author: JeanDavid Big funky green star, 20000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 115548 of 121585
Subject: Re: my broker's 1099 form had a strange suprise Date: 3/18/2012 6:59 PM
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I've also never heard of a brokerage issuing a 1099-G, which is used by states to report income tax refunds and unemployment payments.

My state (NJ) does not send out 1099-G statements any more. It has to occur to you that they may have one for you. You go to their web site and look it up. You can print it out. If you forget, I do not know what happens. It seems to me if they can afford to sent it to the IRS, they should be able to send me one too.

This state is so cheap that for one payment to the state, you cannot send checks or cash. You must pay on line at their web site and arrange for an EFT from your bank. I work for a small religious non-profit. We must pay a $25.year fee. We do not happen to have a computer. Luckily, I have one, so I pay the fee from their checking account. It is lucky they even have a checking account. Otherwise we would be unable to obey the law unless a member of the organization voluntarily paid that fee.

It seems to me with all the government' computers and such, they should send me my tax return already filled out. If I agreed with it I would sign it and send it back, possibly with a payment. And they would refund to me. If I disagreed with their form, I could make the corrections and send them back in. But they do not do it that way.

I also dream of sending them all the damned records I have, including all confirmation slips from brokers, etc. If they want them, they should keep them. Who has room for all that damned stuff?

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Author: randSaver One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 115573 of 121585
Subject: Re: my broker's 1099 form had a strange suprise Date: 3/20/2012 1:40 PM
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All replies here have helped to clear the fog for me, so thanks to all. Also, after reading the replies I looked over my 1099 from Zecco again and noticed some things that were misleading before. It is strange but some first letters of words on the form are in bold type, while the rest of the word is in regular font. So under "table of contents" on the form it appears like it's saying "1099 D" and 1099 G". You probably have to actually see it on the form to really get what I'm saying here. Odd that they print it out that way. Anyway that's cleared up - there is no 1099D or G, I was mistaken. It's just a 1099 DIV. In my defense - I only look at these once per year. ;^)

And near one of the places on the form that Zecco has listed my mutual fund sale and my stock sale and cash amounts from sales - it says "1099 B". Now everyone must think I'm such an idiot. Can't believe I didn't notice that before, but I think it didn't get my attention because - it has no information about dates of purchases or purchase prices. And when I look back on my records I see that both the mutual fund and stock were purchased through other brokers, so Zecco does not have that info.

a little embarrassed, randSaver

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