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I thought I knew this stuff, but it's hard to believe that a broker the size of IB could get this wrong.


Oh Ye of little faith! IB is actually pretty small compared to the likes of Merrill Lynch and Fidelity, and they manage to get stuff wrong - or at least reported in such a way that doesn't reflect the actual transaction - all too often.

I once had Fidelity report $15,000 of proceeds on a bond, of which I never, ever, owned more than $5,000 par value. I sort of knew why, on that one. I had sold pursuant to a tender offer that was rejected initially, due to insufficient response by the total number of bondholders, and then later went through. They had cancelled and re-entered the trade in my account twice, and there was no reason for either. There was only one actual sale, and one receipt of $5,000.

So I reported 3 sales, one with the actual gain. And then two more $5K sales, with no gain or loss, to avoid a later round of correspondence with IRS.

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