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One of my brokers got bought out in 2017, and the 1099 reporting has been an absolute mess. All transactions from before the buyout are missing. To make matters worse, it’s the account where I use options as a strategy, so there are a lot of transactions in that account.

I have sufficient records to manually enter the missing information into TurboTax, but I’d rather wait for the 1099 and just tweak for any errors or missing basis information. Unfortunately, the broker can’t give me a solid answer as to when the corrected 1099 will come out and has already missed two of its own self-imposed deadlines.

As a result, at this point, I’m expecting my wife and I will need an extension to file our 2017 taxes. My best estimate at this point is that we will not owe money for 2017 to the federal government, our home state, or the state where our rental property is located.

Aside from filing the extension request by the deadline, are there any key watch outs I should know about?

Thanks in advance for your help.

Regards,
-Chuck
Inside Value Home Fool
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As a result, at this point, I’m expecting my wife and I will need an extension to file our 2017 taxes. My best estimate at this point is that we will not owe money for 2017 to the federal government, our home state, or the state where our rental property is located.

Aside from filing the extension request by the deadline, are there any key watch outs I should know about?


Do whatever you can to ensure that your 'best estimate' is really correct, as extensions do not mitigate the need to have all taxes paid by the original due date for the return. At least on the Federal level, taxes that are unpaid by that date will result in underpayment penalties and interest being owed, in addition to the unpaid taxes. The state laws may be different, so you would need to check those yourself.

AJ
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Thanks, AJ —

Do whatever you can to ensure your ‘best estimate’ is really correct

When I discovered the missing numbers on the 1099, I filled in what I thought would be a conservative guess in TurboTax based on my Quicken records to make sure we’d be ok from the perspective of the total taxes paid. I entered a fake non-qualified dividend entry to cover the missing dividends, a fake completely taxable interest entry to cover the missing interest payments, and a fake short term gain to cover the missing reported gains.

I figured that would be a conservative estimate, as I’m pretty sure the real numbers will include qualified dividends and long term capital gains. Even with those choices, TurboTax indicates we end up covered from the perspective of taxes paid in 2017.

If you’ve got a different perspective on how to check that we’re covered, I’d appreciate it.

Regards,
-Chuck
Inside Value Home Fool
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