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Author: powertrader77 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121596  
Subject: Tax tips for Newbie? Date: 2/22/2000 1:35 AM
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Hello All,
I need some help on filing tax. I am a college students whose status are dependent to parents. My salaries for 1999 exceed $4300(Maximum Standard Deduction for Dependent Single). Therefore, I will receive only 1/3 of refund under my tax bracket. However, I have capital loss of $1800 plus $500 of commission. Can I reports these capital loss to increase my deduction? How? What form should I use? I have only used 1040EZ bofore. Can I carry over part of loss to next year? What if I just file 1040EZ and forget about additional deduction and capital loss? Do you think IRS is still going to stick their neck? Any info will be welcome. Thank you for your time.

James
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Author: RooCat Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 29545 of 121596
Subject: Re: Tax tips for Newbie? Date: 2/22/2000 2:44 AM
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However, I have capital loss of $1800 plus $500 of commission. Can I reports these capital loss to increase my deduction? How? What form should I use? I have only used 1040EZ bofore. Can I carry over part of loss to next year? What if I just file 1040EZ and forget about additional deduction and capital loss? Do you think IRS is still going to stick their neck?

You must report the capital losses since the brokerage firm will report the sale to IRS on a 1099-B. You must file a form 1040 with a schedule D. If you do not do the schedule D showing the date of sale and purchase as well as your cost basis (what you paid plus commissions) and net proceeds, IRS will assume that the whole sales price is gain. Your loss does not exceed your income so there will be no carry forward loss.

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Author: powertrader77 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 29614 of 121596
Subject: Re: Tax tips for Newbie? Date: 2/22/2000 3:50 PM
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>You must report the capital losses since the >brokerage firm will report the sale to IRS on a 1099->B. You must file a form 1040 with a schedule D. If >you do not do the schedule D showing the date of sale >and purchase as well as your cost basis (what you >paid plus commissions) and net proceeds, IRS will >assume that the whole sales price is gain. Your loss >does not exceed your income so there will be no carry >forward loss.

I would appreciate your reply. I obtained Schedule D, and got confused again. There are only 4 rows(Part I, 1) to write down transaction, however, I made more than 20 times of transaction this year. Do I have to get different form, or just use 4-5 copies of Schedule D. Also, writing in cost basis indicate ignoring buy/sell commision fee. I thought I can use commision fee as expense for capital gain/loss. What's going on? Thank you for your time.

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Author: RooCat Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 29657 of 121596
Subject: Re: Tax tips for Newbie? Date: 2/22/2000 8:47 PM
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I obtained Schedule D, and got confused again. There are only 4 rows(Part I, 1) to write down transaction, however, I made more than 20 times of transaction this
year. Do I have to get different form, or just use 4-5 copies of Schedule D. Also, writing in cost basis indicate ignoring buy/sell commision fee. I thought I can use commision fee as expense for capital gain/loss. What's going on?


You need to get Schedule D-1, Continuation Sheet for Schedule D. You will take the totals from D-1 and put them on line 2, Schedule D. No, there is no place in the instructions that indicates you ignor commissions. As a matter of fact, the instructions clearly states that your sale price is gross proceeds less</> commissions and that your cost basis is price you paid plus commissions (See instructions for Schedule D under sales price and cost basis).

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