Is IB's 1099 for 2001 wrong?

Originally posted by enews123
I complained about IB's gross reporting without commission last year. It is not a big deal unless you have to change all the entries manually in Quicken and you made more than handle of trades and you daytrade. It was rather unpleasant. I spent 4 times
the amount of time on IB than the other brokers.

If you daytrade, Quicken doesn't handle short and long the same stocks multiple times a day that well. For some reasons, it doesn't keep track of the order of execution(The grand total is right but you get -ve dollar minus -ve dollar and a wrong match)..

It took me another day to clean up those -ve numbers..

Then, Quicken to Turbtax can screw it up again for you so I spent
another day to double check the Turbotax entries.

Also, IRS does its first round of simple checking through computer. If I were you, I would make sure my schedule D amounts match with the 1099s. I don't want my form being spit out just because of the tiny commission mismatch.
More...

The 1099-B sent to the IRS tells the IRS if commissions are included or not included on the 1099-B. I would think the IRS would have to manually find the difference in the gross sales proceeds we report and what is reported on the 1099-B and the IRS would look and see we did the right thing and added in the commissions on the schedule D. I do not think the IRS wants to look at all of our trades unless it looks like we are cheating or made an obvious error.

Catoosa
 
From Schedule D instructions
On page D-3
"Like an investor, a trader must report each
sale of securities (taking into account com-missions
and any other costs of acquiring or
disposing of the securities) on Schedule D
or D-1 or on an attached statement contain-ing
all the same information for each sale
in a similar format."

On page D-5
"Column (d)—Sales Price
... But if Form 1099-B (or substitute statement) in-dicates
that gross proceeds minus commis-sions
and option premiums were reported to
the IRS, enter that net amount in column
(d)."

I really wish the IRS would make up it's mind if they want commissions included in the sales price or not on Schedule D.
 
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