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Subject:  Re: my broker's 1099 form had a strange suprise Date:  3/18/2012  5:34 PM
Author:  irasmilo Number:  115540 of 132547

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.

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