February 14th, 2016

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