TAX TIP OF THE DAY... reporting investment dividends and capital gains
What you need:
1) 1099-div forms received
2) 1099-B forms received
How to report:
1) dividends... report ordinary dividends, qualified dividends, capital gain distributions on Federal Schedule B.
2) foreign tax... usually report on Federal form 1040, page 2 without additional forms.
3) capital gain distributions... report on Federal schedule D.
4) 1099-B sales & transfers... This is tricky thanks to an IRS change a few years back that changed an already complicated 2 page form into a 6 page nightmare. Report on form 8949. Check the appropriate Part I box, log the correct adjustment code and say a prayer that you didn't miss anything.
One word of caution for the sale of employer stock acquired via stock option purchase... the 1099-B gain loss may be incorrect. The form may not include additional cost basis for amounts already taxed on your W-2.
SHARE WITH A FRIEND.
If you need a tax appointment... www.baboiancpa.com